The development project, valued at $3 billion, was partly funded by a $760 million construction loan from Deutsche Bank that has become due and payable, reports relate, citing 3700 Associates owner Ian Bruce Eichner.

Mr. Eichner, according to the reports, said he was not shocked at the foreclosure notice and added that he was currently in collaboration with Deutsche Bank and Merrill Lynch & Co. in search for interested investors.

The developer's financial problems spurred from the crisis in thehousing and financial markets, which is beyond its ability, reports say, citing Mr. Eichner.

Spokesman of the project said that about 84% of the hotel units were already sold out and added that Global Hyatt will manage the hotel as a Grand Hyatt, the reports relate.

According to Mr. Eichner, 3700 Associates is currently engaged in several discussions with parties, based on the reports.

Undisclosed lenders stated they will extend loan to complete the project at Cosmopolitan Resort only if 3700 Associates can raise its equity by 10%, the reports reveal.

Meanwhile, Deutsche Bank and Merrill Lynch refused to comment on the issue.

Perini Building Company, Inc., a wholly-owned subsidiary of PeriniCorporation, is the general contractor for the project which isscheduled for completion in December of 2009.

Currently, Perini is in discussions with developer, 3700 Associates and lender, Deutsche Bank, to facilitate an orderly continuation ofconstruction of the project. Pending the outcome of the discussions, the company is unable to determine the financial impact, if any, at this time. Meanwhile, construction work continues and all current amounts due to Perini have been paid pursuant to the terms of the construction contract.

As of Dec. 31, 2007, work remaining to be performed under theconstruction contract totaled approximately $1.4 billion.

About Perini Corporation

Perini Corporation (NYSE: PCR) -- http://www.perini.com/-- is a construction services company offering diversified general contracting, construction management and design/build services to private clients and public agencies throughout the world. It provided construction services since 1894. It offers general contracting, preconstruction planning and comprehensive project management services, including the planning and scheduling of the manpower, equipment, materials and subcontractors required for a project. It also offers self-performed construction services including sitework, concrete forming and placement and steelerection. It is known for our hospitality and gaming industry projects, sports and entertainment, educational, transportation, healthcare, biotech, pharmaceutical and high-tech facilities, as well as large and complex civil construction projects and construction management services to U.S. military and government agencies.

About 3700 Associates

The 3700 Associates LLC is a real estate developer owned by Ian Bruce Eichner. It is currently developing Cosmopolitan Resort & Casino, a 3,000-room high-rise casino and hotel due to open in late 2009 between the Bellagio casino resort and the CityCenter casino complex. The project cost, initially valued at $1.8 billion, has ballooned to $3 billion. On Oct. 11, 2005, 3700 Associates signed a $1 billion construction contract with Perini Corporation's subsidiary, Perini Building Company, Inc.

ACE SECURITIES: S&P Cuts 53 Classes' Ratings on Monthly Losses--------------------------------------------------------------Standard & Poor's Ratings Services lowered its ratings on 53 classes of asset-backed pass-through certificates from nine Ace Securities Corp. Home Equity Loan Trust deals. Twenty-six of the classes were downgraded to speculative-grade from investment-grade. Concurrently, S&P affirmed its ratings on all of the remaining classes of mortgage pass-through certificates from these nine series.

The table below shows the current performance data of the nine series.

The downgrades reflect adverse collateral performance that has caused monthly losses to exceed excess interest. This trend has led to the deterioration of overcollateralization (O/C) and credit support from subordination. As shown in the lists above, cumulative realized losses as a percentage of original pool balance for the downgraded transactions range from 0.95% (series 2005-AG1) to 1.98% (series 2005-HE7). Class B-3 from series 2005-HE5 has taken principal write-downs, and as a result, S&P lowered its rating on this class to 'D' from 'CCC'.

The delinquency pipeline in many of the transactions strongly suggests that the trend of monthly losses exceeding excess interest will continue, further compromising credit support. As of the January 2008 remittance period, severe delinquencies (90-plus days, foreclosures, and REOs) for the downgraded transactions ranged from 11.67% (series 2002-HE2) to 39.87% (series 2005-HE2).

S&P affirmed its ratings on the remaining classes from these series based on loss coverage percentages that are sufficient to maintain the current ratings despite the negative trends in the underlying collateral of many of the deals.

Subordination, O/C, and excess spread provide credit support for all of the affected deals. The collateral for these transactions primarily consists of subprime, adjustable-, and fixed-rate mortgage loans secured by first liens on one- to four-family residential properties.

AEGIS ASSET: Moody's Cuts Ratings on Six Classes from Two Deals---------------------------------------------------------------Moody's Investors Service downgraded six classes of certificates from two deals issued by Aegis Asset-Backed Securities Trust in 2003. The actions are based on the analysis of the credit enhancement provided by subordination, overcollateralization and excess spread relative to expected losses.

Both deals have already stepped down. Erosion of overcollateralization (OC) and subordination levels due to stepdown and losses has left the rated bonds less protected against expected remaining losses. As of December 2007, Aegis Asset Backed Securities Trust, Mortgage Pass-Through Certificates, Series 2003-1 has a pool of factor of less than 7% and no OC for a required OC of $1.4 million. Class B-1 has taken $1,312,207 of cumulative losses and has a current tranche balance of $842,142, from an original face amount value of $8,591,321.

As of December 2007, Aegis Asset Backed Securities Trust, Mortgage Pass-Through Certificates, Series 2003-2 has a pool of factor of 9%. OC was below target, providing $316,683 protection against $5,927,790 worth of loans in Foreclosure and REO. The deals are backed by subprime, fixed and adjustable-rate mortgage loans.

AMERICA'S FIRST: Asks Seminole Court's Okay to Liquidate Assets---------------------------------------------------------------America's First Home asked the Seminole County Court for permission to dispose its assets, Dick Hogan writes for The News Press. The company intends to use the proceeds to pay its creditors.

The homebuilder requested the appointment of Lewis Freeman, a Miami accountant, as its receiver, News Press relates.

Creditors must submit by April 20, 2008, their proofs of claims with the Court, News Press reports.

Among the creditors is Randy Krise, managing member of Miracle Plaza FM LLC, who is owed owed $23,000 in rent, News Press

Altamonte Springs-based America's First Home -- http://www.americasfirsthome.net/-- went from building 92 houses in 1999 statewide to more than 1,000 in 2005, according to its Web site, which is currently under construction. It was formed by Bill Frey, the founder of Frey & Son. His son, Barry Frey is Frey & Son's current president.

AMERICAN HOME: Moody's Cuts 16 Tranches' Ratings on Delinquency---------------------------------------------------------------Moody's Investors Service downgraded the ratings of sixteen tranches and has placed under review for possible downgrade the ratings of five tranches from four transactions issued by in 2007. The collateral backing these classes primarily consists of first lien, adjustable-rate negatively amortizing Alt-A mortgage loans.

The ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its analysis Moody's has also applied its published methodology updates to the non-delinquent portion of the transactions.

AMR CORP: Posts $69 Million Net Loss in 2007 Fourth Quarter-----------------------------------------------------------AMR Corporation, the parent company of American Airlines Inc., reported Wednesday a net loss of $69 million for the fourth quarter of 2007.

The results for the fourth quarter of 2007 include the impact of several special items that amounted to a cumulative positive impact of approximately $115 million. These items include: a $138 million gain on the sale of AMR's stake in ARINC; a $39 million gain to reflect the positive impact of the previously announced change to an 18-month expiration of Aadvantage(R) miles; and a $63 million charge associated with the retirement of 24 MD-80 aircraft that previously had been temporarily stored.

The current quarter results compare to a net profit of $17 million for the fourth quarter of 2006.

For all of 2007, AMR posted a net profit of $504 million. In addition to the special items from the fourth quarter, the full-year 2007 results also include the impact of a $30 million charge, disclosed in the third quarter, to reflect an adjustment for additional salary and benefit expense accruals related to years 2003 through 2006.

AMR's full-year 2007 results compare to a net profit of $231 million net profit, or $0.98 per diluted share, for all of 2006.

In the fourth quarter of 2007, total operating revenues were $5.68 billion, a 5.3% increase from total operating revenues of $5.4 million in the corresponding period in 2006.

For the year ended Dec. 31, 2007, total operating revenues were $22.94 billion, compared with total operating revenues of $22.56 billion in 2006.

"Our employees overcame enormous challenges from unprecedented weather disruptions, air traffic control problems and record fuel prices to help our company take another important step forward in 2007. We earned our second straight annual profit, achieving our first back-to-back profitable years since 1999-2000, and made progress in many areas, including strengthening our balance sheet, focusing on customers, renewing our fleet, bolstering our network and investing in products and services," said AMR chairman and chief executive officer Gerard Arpey.

"While record fuel prices contributed significantly to our fourth quarter loss - our first quarterly loss after six straight profitable quarters - they are a reminder of the challenges we must continue to overcome as we strive for consistent and adequate profitability. As we thank our employees for their efforts in 2007, it is also clear that we have more work ahead as we seek to maintain momentum in 2008 and beyond."

Operational Performance

American's mainline passenger revenue per available seat mile, excluding special items, increased by 4.5% in the fourth quarter compared to the year-ago quarter.

Mainline capacity, or total available seat miles, in the fourth quarter increased 0.4% compared to the same period in 2006. The year-over-year increase in capacity was largely the result of previously announced aircraft density initiatives, mitigated somewhat by weather-related cancellations. Fourth quarter mainline departures declined slightly year over year.

American's mainline load factor - or the percentage of total seats filled - was 80.2% during the fourth quarter, compared to 78.8% in the fourth quarter of 2006. American's fourth-quarter yield, which represents average fares paid, excluding special items, increased 2.6% compared to the fourth quarter of 2006, its 11th consecutive quarter of year-over-year yield increases.

Excluding special items, AMR reported fourth quarter consolidated revenues of approximately $5.64 billion, an increase of 4.6% year over year.

American's mainline cost per available seat mile in the fourth quarter, excluding special items, increased 8.6% year over year. The largest contributor to the year-over-year increase in unit costs was fuel. In the fourth quarter, American paid $367 million more than it would have paid at fourth quarter 2006 fuel prices. Consolidated fuel expense in the fourth quarter was $412 million higher than it would have been at fourth quarter 2006 fuel prices.

Excluding fuel and special items, mainline unit costs in the fourth quarter increased by 0.6% year over year, largely reflecting a $44 million accrual in the fourth quarter for a one-time payment to eligible employees under the company's broad-based variable compensation plans. For the full year, the accrual for the one-time payment totaled $67 million.

Arpey said the company's Board of Directors had approved the one-time payment "in recognition of the collective effort of our employees and the special circumstances that existed in 2007." Each eligible American Airlines employee is expected to receive a payment of $800 under the Customer Service Component of the company's Annual Incentive Plan (AIP). "This is a tangible way of saying 'thank you' for all that our employees did for our company in a challenging year," he said.

Balance Sheet Improvement

AMR ended the fourth quarter with $5.0 billion in cash and short-term investments, including a restricted balance of $428 million, compared to a balance of $5.2 billion in cash and short-term investments, including a restricted balance of $468 million, at the end of the fourth quarter of 2006. AMR paid off $865 million in debt in the fourth quarter, including scheduled debt payments and an unscheduled $545 million aircraft debt prepayment. Of the company's $2.3 billion in debt payments for all of 2007, approximately $1 billion of those were prepayments.

AMR reduced Total Debt, which it defines as the aggregate of its long-term debt, capital lease obligations, the principal amount of airport facility tax-exempt bonds, and the present value of aircraft operating lease obligations, to $15.6 billion at the end of the fourth quarter of 2007, compared to $18.4 billion a year earlier. AMR reduced Net Debt, which it defines as Total Debt less unrestricted cash and short-term investments, from $13.6 billion at the end of the fourth quarter of 2006 to $11.0 billion in the fourth quarter of 2007.

As a result of scheduled principal payments as well as prepayments, refinancings and other efforts to strengthen its balance sheet, AMR's net interest expense for 2007 was $174 million lower than in 2006, a 23.2% reduction.

As announced in October, AMR met its projected 2007 commitment to fund its defined benefit pension plans for employees by contributing $380 million to these plans through the first three quarters of the year. AMR has contributed nearly $2 billion to these plans since 2002, as the company continues to meet this important commitment to employees. The company's 2007 pension contributions, along with strong investment returns, higher market discount rates and legislative changes to the mandatory pilot retirement age, helped to improve the accumulated benefit obligation funded status of AMR's pension plans to 96%, up from 84% at the end of 2006.

About AMR Corporation

Headquartered in Forth Worth, Texas, AMR Corporation (NYSE:AMR) operates with its principal subsidiary, American AirlinesInc. -- http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jetservice to about 150 destinations throughout North America, theCaribbean, Latin America, Europe and Asia. American is also ascheduled airfreight carrier, providing freight and mail servicesto shippers throughout its system.

Its wholly owned subsidiary, AMR Eagle Holding Corp., owns tworegional airlines, American Eagle Airlines Inc. and ExecutiveAirlines Inc., and does business as "American Eagle." AmericanBeacon Advisors Inc., a wholly owned subsidiary of AMR, isresponsible for the investment and oversight of assets of AMR'sU.S. employee benefit plans, as well as AMR's short-terminvestments.

* * *

As reported in the Troubled Company Reporter on Nov. 30, 2007,following the announcement by AMR Corp. that it intends to divestits American Eagle Holding Corp. subsidiary in 2008, Fitch expectsno near-term impact on the debt ratings of AMR and its principaloperating subsidiary, American Airlines Inc. Fitch affirmed bothentities' Issuer Default Ratings at 'B-' on Nov. 13, 2007, whilerevising the Rating Outlook for AMR to Positive.

ASARCO LLC: Wants to Hire Halpering Battaglia as Consulting Expert------------------------------------------------------------------ASARCO LLC and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of Texas to employ Halperin Battaglia Raicht, LLP, as its consulting expert and potential witness in connection with the fraudulent transfer complaint against Americas Mining Corporation, nunc pro tuncNov. 2, 2007.

Halperin will assist ASARCO in the ongoing development and analysis of the many issues involved in the AMC Litigation; and will testify at trial to facilitate the orderly, unified presentation and expert analysis of the various aspects of evidence supporting ASARCO's position in the Litigation.

ASARCO will pay for Halperin's services according to the firm's customary hourly rates:

ASARCO will also reimburse Halperin for any necessary out-of-pocket expenses the firm incurs.

Alan D. Halperin, Esq., a partner at Halperin Battaglia Raicht, LLP, in New York, assures the Court that his firm does not represent any interest adverse to ASARCO and its estate, and is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code.

The AMC Litigation, which is currently pending in the U.S. District Court for the Southern District of Texas, is likely the single largest asset of ASARCO's estate, Eric A. Soderlund, Esq., at Baker Botts, L.L.P., in Dallas, Texas, says.

Through the AMC Litigation, ASARCO seeks the return of its ownership interest in Southern Peru Copper Corporation, which, Mr. Soderlund says, is worth billions of dollars, along with the present value of dividends paid on the stock since the fraudulent transfer, believed to be worth more than $1,400,000,000. "The multi-billion dollar value represented by the AMC Litigation will only be realized if ASARCO can ultimately succeed on the merits of the case, which success will be affected by the quality and timeliness of the necessary expert retentions," Mr. Soderlund contends.

ASARCO LLC: Wants to Sell Perth Amboy Property for $19.8 Million----------------------------------------------------------------ASARCO LLC and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of Texas to:

(i) sell its 67-acre real property located in Perth Amboy, New Jersey, to Emerald Bay Equity, LLC, for $19,800,000, free and clear of all liens, claims and other interests; and

-- assume ASARCO's environmental obligations relating to the Property, which ASARCO estimates to have a present value of approximately $9,000,000;

-- release, defend, and indemnify ASARCO for any environmental liabilities relating to the Property; and

-- execute an Administrative Consent Order with the New Jersey Department of Environmental Protection for remediation of the Property.

Emerald Bay has given a $495,000 deposit to General Land Abstract Co., Inc., ASARCO's escrow agent, Tony M. Davis, Esq., at Baker Botts, L.L.P., in Houston, Texas, tells the Court.

Mr. Davis says that in 1997, the city government of Perth Amboy designated the Property as a redevelopment zone. In 2004, the Perth Amboy Redevelopment Agency entered into a redevelopment agreement with a designated redeveloper, PA-PDC Perth Amboy, LLC, for the acquisition and redevelopment of the properties in the designated zone.

Mr. Davis says that if PA-PDC is not able to acquire the Property consensually, then the Redevelopment Agency may file a condemnation action to acquire the Property. Any legal action to acquire title of the Property through condemnation is subject to defenses ASARCO may have and is currently subject to the automatic stay imposed by Section 362 of the Bankruptcy Code.

Although there have been inquiries concerning the acquisition of the Property, the redevelopment status has limited the ability to market it, Mr. Davis tells the Court. ASARCO has delivered the proposed Bidding Procedures to several entities that had previously expressed a bona fide interest in the Property, including PA-PDC.

Bidding Procedures

To maximize the value of the Property, ASARCO asks the Court to approve uniform bidding procedures to govern an auction for the sale of the Property:

(a) Any entity that wishes to participate in the bidding process will deliver a competing offer for the Property to Tom Aldrich, Ruth Kern, Baker Botts, L.L.P., and Reed Smith, LLP, on a date still to be determined.

(b) To be considered a "Qualifying Bidder," a Competing Offer must, among other things, be accompanied by a $750,000 good faith deposit; confirm that the bidder has completed due diligence and has met with the U.S. Environmental Protection Agency and the NJDEP; and must demonstrate that the bidder understands the environmental issues associated with the Property. The Competing Offer must create a value that is at least $1,000,000 greater than the Purchase Price.

(c) If one or more Qualifying Bids are received, ASARCO will conduct an auction at a time and place still to be decided on.

(d) Bidding will begin initially with the highest Qualifying Bid and subsequently continue in minimum increments of at least $250,000 higher than the previous bid.

(f) If ASARCO selects a buyer other than Emerald Bay, ASARCO will pay a $750,000 break-up fee to Emerald Bay.

(g) If no Qualifying Bid is received, a hearing to consider the sale of the Property to Emerald Bay will be held on a date still to be decided on.

Feasibility Period

Mr. Davis further relates that the PSA provides Emerald Bay with a "feasibility period" of 180 days after the Court approves the proposed bidding procedures. During the Feasibility Period, Emerald Bay will have the opportunity to:

-- inspect and investigate the physical and environmental condition of the Property, its land use, zoning and developments rights, and its permits, contracts and leases; and

-- determine to its satisfaction the condition, quality, merchantability or suitability of the Property for its own purposes.

Emerald Bay will notify ASARCO, on or before the expiration of the Feasibility Period, as to whether it approves or disapproves of the Property. If Emerald Bay provides timely notice of disapproval, the Agreement will terminate. Otherwise, Emerald Bay will be deemed to have approved of the Property.

ASPEN EXECUTIVE: Wants to Extend Plan-Filing Deadline to May 12---------------------------------------------------------------Aspen Executive Air LLC asks the U.S. Bankruptcy Court for the District of Delaware to extend its exclusive right to file for a Plan of Liquidation until May 12, 2008, Bill Rochelle of the Bloomberg News reports.

Mr. Rochelle relates the Debtor recently closed its sale of assets to John P. Calamos, Pinnacle Air LLC's controlling shareholder.

ATLANTIS PLASTICS: Weak Liquidity Spurs Moody's to Junk Rating--------------------------------------------------------------Moody's Investors Service downgraded the Corporate Family Rating and other instrument ratings of Atlantis Plastics, Inc. to Ca. The outlook was changed to negative due to the continued poor liquidity. This concludes the review for downgrade initiated Sept. 20, 2007.

The downgrade of Atlantis's Corporate Family Rating to Ca reflects the company's lack of success to date in negotiating a waiver and amendment to its Credit Facilities for the breach of financial covenants, lack of liquidity and likely impairment of the debt instruments on an enterprise value basis. Atlantis's liquidity is severely impaired given the lack of availability under its revolver, little cash on hand and negative free cash flow. Moody's believes that the company's value is less than its debt and that each class of debt will realize losses in an event of default. Atlantis has defaulted upon its covenants and received amendments twice in the last two years.

Atlantis Plastics, Inc., headquartered in Atlanta, Georgia, is a manufacturer of specialty polyethylene films and molded and extruded plastic components used in a variety of industrial and consumer applications. Atlantis has 15 manufacturing plants located throughout the United States. Revenues for the twelve months ended Sept. 30, 2007 were $398 million.

The outlook revision follows the company's disclosure that its results for all of fiscal 2007 will be much weaker than expected. Bon-Ton said that comparable-store sales for the combined months of November and December were down 4%. "This was far worse than the department store peer group, which averaged a 1% increase," said Standard & Poor's credit analyst Gerald A. Hirschberg.

Furthermore, Bon-Ton said that it was lowering full-year EBITDA guidance to a range of $245 million to $253 million. "This is also much lower than we had anticipated," said Mr. Hirschberg. "We now expect that leverage for 2007 could be as high as 5.7x, and EBITDA coverage of interest may be approximately only 1.9x." Although these ratios are characteristic of a 'B' rating for retailers in general, Standard & Poor's believes that economic fundamentals and a weakening retail environment will continue to pressure sales, margins, and credit measures for a good part of 2008.

BROTMAN MEDICAL: Alvarez & Marsal Approved as Panel's Advisor-------------------------------------------------------------The United States Bankruptcy Court for the Central District of California gave the Official Committee of Unsecured Creditors of Brotman Medical Center Inc. authority to employ Alvarez & Marsal Healthcare Industry Group as its financial advisor.

Alvarez & Marsal is expected to review and evaluate the current and prospective financial, and operational condition of the Debtor, including but not limited to:

a) cash receipts and disbursement forecasts;

b) various plan of reorganization that may be considered or pursued by the Debtor;

c) appraisals of assets prepared by the Debtor;

d) assets and liabilities, generally;

In addition, the firm will:

a) assist the committee in evaluating DIP or other financings for the Debtor;

b) assist the Committee to analyze and evaluate potential transactions or other plans and effort to sell assets, recapitalize or reorganize the Debtor;

c) assist the Committee and its counsel in evaluating and responding to various developments or motions during the course of the Debtor's Chapter 11 including providing expert testimony as may be acceptable to A&M.

d) represent and assist the Committee counsel in representing the Committee in negotiations with the Debtor and third parties;

e) provide other services that may be requested by the Committee and as may also be acceptable to the firm.

-- $3 million class G to 'AAA' from 'B+'; -- $5.6 million class H to 'AAA' from 'B-'.

Classes B, C, D, E and F are paid in full. The $40.2 million class I certificates are not rated by Fitch.

The upgrades reflect the increased credit enhancement as a result of loan payoffs and amortization. As of the April 2006 distribution date, the pool's aggregate principal balance has been reduced by 89.1% to $48.8 million from $447 million at issuance. Although, the transaction has limited loan diversity with only two loans remaining in the pool, the credit enhancement levels were sufficient to merit the upgrades. The transaction has no realized losses to date.

The two remaining loans (100%) in the transaction are currently in specially servicing and are both real-estate owned. The largest specially serviced asset (83.8%) is a portfolio of office properties located in Dallas, Texas. The special servicer is continuing with their leasing efforts to increase occupancy before marketing the properties for sale. Significant losses are expected to be absorbed by the non-rated class I certificates.

The other specially serviced asset is a hotel located in San Francisco, California, which originally transferred to the special servicer as a result of a maturity default. The property lacks a franchise affiliation and the special servicer is currently marketing it for sale. Minimal losses are expected and should be absorbed by class I.

At the same time, Standard & Poor's affirmed its 'B+' senior unsecured debt rating for Cablevision, intermediate holding company CSC Holdings Inc. and subsidiary Rainbow National Services LLC, and also affirmed its 'B+' subordinated debt rating and 'BBB-' senior secured rating and its '1' recovery rating on Rainbow National Services. In addition, the rating on intermediate holding company CSC Holdings Inc.'s $5.5 billion of secured bank facilities was raised to 'BBB-' from 'BB' and the recovery rating was revised to '1'. All ratings have been removed from CreditWatch.

The upgrade for this bank loan reflects Standard & Poor's revised bank loan methodology, adopted in June 2007, which was not applied to CSC Holding's bank loan because it was on CreditWatch at that time. The ratings were placed on CreditWatch with negative implications following the announcement that Cablevision's board of directors had accepted a buyout offer by the Dolan Family Group. Shareholders subsequently rejected the buyout in October 2007, but the ratings remained on CreditWatch pending S&P's review of the company's financial policy and financial and operating plans.

As of Sept. 30, 2007, the company had about $11.3 billion of total funded debt outstanding, excluding collateralized debt obligations.

Cablevision's ratings reflect the attractive demographics of the area served by the company's cable TV systems in the metro New York/New Jersey/Connecticut area, which comprise about 3.1 million basic cable customers. This has contributed to very good broadband penetration relative to the industry of 71%, and high overall subscriber average revenue per user in excess of $120, one of the highest levels in the industry, as well as healthy cable EBITDA margins of about 38%. This business is therefore considered to have a satisfactory business position.

However, the attractive nature of the subscriber base has also prompted aggressive competition from Verizon's FiOS television/broadband services over the last year, which could accelerate even further in 2008 as Verizon increasingly receives video franchise relief from local regulators in Cablevision's markets.

"We note that it would likely take several years for Cablevision to demonstrate that it can minimize losses to FiOS. Even if the FiOS impact can be blunted, a revision to a stable outlook would also require a tempered financial policy," said Standard & Poor's credit analyst Catherine Cosentino.

Class B-5 remains at 'CC' and the DR rating is being lowered due to increased loss expectations associated with the two specially serviced assets.

The rating affirmations are due to defeasance and paydown since Fitch's last ratings action being moderated by increased loss expectations on the specially serviced assets and an increase in Fitch Loans of Concern. Fitch Loans of Concern include the Specially Serviced loans and loans with low occupancy, debt service coverage ratio's and other performance issues.

Fifty-five loans (33.8%) have defeased since issuance, including two of the top five loans (9.6%). As of the March 2007 distribution date, the pool has paid down 23.1% to $958 million from $1.25 billion at issuance.

There are currently two assets (1.8%) in special servicing, both of which are real estate owned. The largest specially serviced asset (1%) is an office property located in Dayton, Ohio. The property is listed for sale and the special servicer is currently evaluating purchase offers. The other specially serviced asset (0.6%) is an industrial property located in Baltimore, Maryland and is currently listed for sale. Based on recent appraised values, losses are expected on both assets.

The fourth largest asset in the pool (4.5%) is a retail mall located in Charlotte, North Carolina and is considered a Fitch Loan of Concern. Although the loan is current, a non-collateral anchor tenant vacated at the end of 2006. Fitch will continue to monitor the performance of this asset.

CENTRO NP: Moody's Slashes Senior Debt Rating to B3 From B1-----------------------------------------------------------Moody's Investors Service downgraded the senior unsecured debt ratings of Centro NP LLC to B3, from B1, as the company moves closer to its Feb. 15, 2008 refinancing deadline and its parent, Centro Properties Group, discloses additional liquidity and accounting issues. The ratings remain on review for downgrade.

These ratings actions reflect the continued financial difficulties, accounting issues, increased exposure to currency rate fluctuations, and potential Australian Securities & Investments Commission disclosure investigation. Moody's also expects that Centro NP LLC will have heightened leverage and secured debt following the take-out of the bridge financing, and significant property sales to fund debt. Moody's review will focus on the final capital structure and strategic profile of the company in light of Centro NP's and Centro Properties Group's short-term pressure to refinance debt. Moody's will continue to monitor Centro NP's compliance with its bond covenants and the quality and composition of its portfolio as it works though these financings.

Moody's acknowledges that Centro NP has a defensive portfolio with a $6.3 billion market value that may afford opportunities for asset sales or financing to pay off debt. Since the acquisition, the bridge loan has been reduced to approximately $1.75 billion due to a $300 million CMBS issuance and the conversion of $400 million to a one-year term loan. Centro Properties Group is operating its US community and neighborhood shopping center portfolio from Centro NP's New York City headquarters, utilizing New Plan's nationwide operating infrastructure and staff as its base. Glenn Rufrano, the CEO of Centro NP, was appointed the CEO of Centro Properties Group this week. He brings greater independence to the restructuring process and a deep knowledge of financing availability in the US, where two-thirds of Centro's 810 property portfolio is situated.

Upwards rating movement would be contingent upon Centro NP refinancing the bridge facility by Feb. 15, 2008 without materially pressuring their leverage, secured debt, the value of their portfolio, and other credit metrics, while complying with bond covenants, in addition to a viable plan to restructure Centro Properties Group's debt. A confirmation of the B3 rating would result from Centro NP reaching a financing plan to which the debt holders agree, with a strategic plan in place to restructure Centro Properties Group's debt. A downgrade to the Caa range or lower would most likely reflect Centro NP's continued issues refinancing its line and/or Centro Properties Group's inability to finance its debt, noncompliance with bond covenants at the Centro NP level, acceleration of bond payments, a firesale of assets or a bankruptcy filing. Although the maturity date of both the bridge facility and the line of credit were extended to Feb. 15, 2008, this date may be extended by the bank group.

These ratings were lowered to B3, and placed under review for downgrade:

Centro NP LLC, headquartered in New York City, owns and operates 465 community and neighborhood shopping centers in 38 states. The company had assets of $6.3 billion and equity of $3.8 billion at Sept. 30, 2007.

Centro Properties Group, headquartered in Melbourne, Victoria, Australia, is an Australian Listed Property Trust that specializes in the ownership, management and development of retail shopping centers in Australia, New Zealand and the USA with A$26.6 billion in assets under management.

CENTRO PROPERTIES: Bracewell & Giuliani Represents Noteholders--------------------------------------------------------------The U.S. noteholders of Centro Properties Group are being represented by Bracewell & Giuliani LLP, according to Bloomberg News.

According to Bloomberg, the U.S. law firm confirmed a report in the Australian Financial Review that it is acting for theCentro Properties investors.

Bracewell & Giuliani LLP is an international law firm with more than 400 lawyers in Texas, New York, Washington DC, Connecticut, Dubai, Kazakhstan and London. The firm serves clients concentrated in the energy and financial services sectors worldwide.

Looming Refinancing Deadline

As reported in the Troubled Company Reporter on Jan. 16, 2008,Centro Properties received advice from its U.S. PrivatePlacement Noteholders who are collectively owed $450 million,which suggested that one or more events of default under therelevant Note Purchase Agreements may have arisen under some orall of the Notes.

Centro has not conceded that there are any such defaults. However, Centro has entered into an agreement with the Noteholdersthrough to Feb. 15, 2008 (or such later date as may be agreed) forthe Noteholders not to act on the events, consistent with itsarrangements with the lenders who are parties to the extensionagreements.

Both the Australian and U.S. lenders have concurred with thearrangements.

Centro said it is in regular dialogue with the lenders who areparties to the Australian Extension Deed dated Dec. 17, 2007, andis expected to continue. According to Centro, the lenders arecurrently considering extending the arrangements under theExtension Deed beyond Feb. 15, 2008.

The U.S. lenders are also considering an extension of theircurrent maturities beyond Feb. 15, 2008, Centro noted.

CEO Quits

Amid trouble in the company's finances, Andrew Scott resigned as Chief Executive Officer and as a director of Centro Properties Group.

Glenn Rufrano has been appointed as Chief Executive Officereffective immediately.

Since the acquisition of New Plan by Centro, Mr. Rufrano has beenChief Executive Officer of Centro US. Mr. Rufrano was formerlythe Chief Executive Officer of New Plan, prior to its acquisitionby Centro in April 2007.

About Centro Properties

Centro Properties Group is a retail investment organisationspecialising in the ownership, management and development ofretail shopping centres. Centro manages both listed andunlisted retail property and has an extensive portfolio ofshopping centres across Australia, New Zealand and the UnitedStates. Centro has funds under management in excess of$26.6 billion.

Mr. Woodbery is Charhouse Boise's local counsel in its bankruptcy proceedings.

As reported in the Troubled Company Reporter on Aug. 8, 2007, Rogers had planned to construct a 34-story tower project dubbed "Boise Place." Financial problems however prompted Mr. Rogers to redesign and build a shorter tower. Rodgers had already defaulted on a $2.6 million loan while his architect filed a $500,000 lienagainst the project.

Rogers filed for bankruptcy to reorganize and keep the project going. However, according to court documents, Rogers failed to file the Debtor's monthly operating reports -- from August to December 2007 -- and pay overdue bankruptcy fees, says the AP. As a result, the Chapter 11 Trustee asked the Court to convert the Debtor's case into a Chapter 7 liquidation proceeding.

Early this week however, Mr. Woodbery and Ms. Lashinsky agreed to let Rogers pay the fees and file the Debtor's much-delayed MOR's, the AP relates. The developer was given until January 22 to rectify the problem.

If the deadline is not met, the AP says, the Trustee will ask the Court again to convert the case which would pavie the way for the Debtor's largest secured creditor, Robert Capps Homes Inc., to foreclose on the building.

Based in Boise, Idaho, Charterhouse Boise Downtown Properties LLC develops real estate. The company filed for Chapter 11 protection on Aug. 1, 2007 (Bankr. D. Idaho Case No. 07-01199). Thomas James Angstman, Esq. at Angstman, Johnson & Associates, represents the Debtor in its restructuring efforts. The Debtor also chose John E. Woodbery, Esq., at Woodbery Law Group, P.S., as its local counsel. The Debtor's schedules of assets and liabilities showed total assets of $10,735,293, and $12,369,052 in total debts.

Lower than expected fourth quarter volumes, notably in the South African beverage business and certain areas within the pharmaceutical and healthcare packaging business, combined with higher than expected startup expenses for a new product line in the alcoholic drinks packaging business, are the primary reasons for the shortfall.

In addition, the company had expected to receive the cash proceeds from the sale of its tobacco packaging facility in Bremen, Germany before year end, but the cash proceeds were not received until the first week of January. Preliminary 2007 operating earnings, excluding special items, are now expected to be approximately $41 million compared to $45 million for 2006.

The company's Senior Revolving Credit Facility was amended for the fourth quarter of 2007 to increase the total leverage ratio from 5.00 to 5.30 and decrease the interest coverage ratio from 2.25 to 2.15. The credit facility lending group is led by Wachovia Bank, N.A., as administrative agent.

"We appreciate the continued support of our bank group," said Andrew J. Kohut, Chesapeake president & chief executive officer. "Business conditions in our industry remain competitive, and we face short-term challenges. However, we are encouraged by several successes with new orders. We are also focused on exploring alternatives for non-core or redundant assets to improve our operating results and reduce debt."

About Chesapeake Corporation

Headquartered in Richmond, Virginia, Chesapeake Corporation(NYSE:CSK) -- http://www.cskcorp.com/-- is a supplier of specialty paperboard packaging products in Europe and aninternational supplier of plastic packaging products to nicheend-use markets. Chesapeake has 47 locations in France,Ireland, United Kingdom, North America, China, HongKong, amongothers and employs approximately 5,500 people.

CHESAPEAKE CORP: Moody's Puts Ratings on Review & May Downgrade---------------------------------------------------------------Moody's Investors Service placed all the credit ratings of Chesapeake Corporation on review for possible downgrade. This rating action follows Chesapeake's public revision downward of its 2007 earnings guidance, primarily due to a shortfall in expected fourth quarter volumes combined with startup expenses for a new product line. On Jan. 16, 2008, the company announced that it had received financial covenant relief from its bank group for its senior secured (stock pledge only) revolver for the fourth quarter of 2007. The maximum total leverage ratio permitted for the period was increased to 5.3x from 5.0x and the minimum interest coverage ratio was decreased to 2.15x from 2.25x. Despite this amendment, Moody's remains concerned about the company's ability to comply with financial covenants over the near term.

The review for possible downgrade will primarily focus on the company's run-rate operations and expected liquidity profile. Notably, the review will explore Moody's concerns surrounding the company's ability to maintain compliance with the financial covenants contained in the existing amended senior secured credit facility, for which the thresholds adjust to considerably tougher levels as of the first quarter of 2008. The maximum total leverage ratio permitted will decrease to 4.25x and the minimum interest coverage ratio permitted will increase to 2.5x.

Moody's placed these ratings of Chesapeake Corporation on review for possible downgrade:

Headquartered in Richmond, Virginia, Chesapeake Corporation is a leading international supplier of specialty paperboard and plastic packaging. Revenues for the twelve month period ended Sept. 30, 2007 were $1.034 billion.

CHICAGO H&S: February 4 Deadline Set for Proofs of Claim Filing---------------------------------------------------------------The United States Bankruptcy Court for the Northern District of Illinois set Feb. 4, 2008, as the final date for creditors of Chicago H&S Hotel Property LLC to file proofs of claim.

The Court also established April 28, 2008, for governmental units to file proofs of claim.

The Debtor said that it has yet to determine the nature, extend and amount of the claims its creditors asserted against the Debtor.

CLASS V FUNDING: Poor Credit Quality Cues Moody's Rating Cuts-------------------------------------------------------------Moody's Investors Service downgraded ratings of six classes of notes issued by Class V Funding III, Ltd., and left on review for possible further downgrade ratings of two of these classes of notes. The notes affected by this rating action are:

The rating actions reflect deterioration in the credit quality of the underlying portfolio, as well as the occurrence on Nov. 13, 2007, as reported by the Trustee, of an event of default caused by a failure of the Principal Coverage Ratio of Class A Notes to be greater than or equal to the required amount pursuant Section 5.1(d) of the Indenture dated Feb. 28, 2007.

Recent ratings downgrades on the underlying portfolio caused ratings-based haircuts to affect the calculation of overcollateralization. Thus, the Principal Coverage Ratio of Class A Notes failed to meet the required level.

As provided in Section 5.2 of the Indenture during the occurrence and continuance of an Event of Default, holders of Notes may be entitled to direct the Trustee to take particular actions with respect to the Collateral Debt Securities and the Notes.

The rating downgrades taken reflect the increased expected loss associated with each tranche. Losses are attributed to diminished credit quality on the underlying portfolio. The severity of losses of certain tranches may be different, however, depending on the timing and choice of remedy to be pursued by certain Noteholders. Because of this uncertainty, the ratings assigned to Class S and to the Class A1 Notes remain on review for possible further action.

COMSTOCK HOME: Has Until July 7 to Comply with Nasdaq Rules-----------------------------------------------------------Comstock Homebuilding Companies Inc. received notice from The NASDAQ Stock Market stating that for 30 consecutive business days the company's common stock has closed below the minimum $1 per share requirement for continued inclusion under Marketplace Rule 4450(a)(5).

The notice has no effect on the listing of the company's securities at this time, and its common stock will continue to trade on the NASDAQ Global Market under the symbol "CHCI."

In accordance with Marketplace Rule 4450(e)(2), the company has 180 calendar days, or until July 7, 2008, to regain compliance. The notice states that if, at any time before July 7, 2008, the bid price of the company's common stock closes at $1 per share or more for a minimum of 10 consecutive business days, NASDAQ staff will provide written notification that the company has achieved compliance with the minimum bid price requirement. No assurance can be given that the company will regain compliance during that period.

If the company does not regain compliance with the minimum bid price requirement by July 7, 2008, NASDAQ staff will provide the company with written notification that its securities will be delisted.

At that time, the company may appeal the delisting determination to a Listings Qualifications Panel. Alternatively, the company may apply to transfer its securities to the NASDAQ Capital Market if it satisfies the requirements for initial inclusion set forth in Marketplace Rule 4310(c), other than the minimum bid price requirement of Marketplace Rule 4310(c)(4).

In the event of such a transfer, the company will be afforded an additional 180 calendar days to comply with the minimum bid price requirement while listed on the NASDAQ Capital Market. No assurance can be given that the company will be eligible for the additional 180-day compliance period, or, if applicable, that it will regain compliance during any additional compliance period.

The company has not determined what action, if any, it will take in response to this notice, although the companyintends to monitor the closing bid price of its common stock between now and July 7, 2008, and to consider available options if its common stock does not trade at a level likely to result in the company regaining compliance with the NASDAQ minimum closing bid price requirement.

On Oct. 25, 2007, the company entered into loan modification agreements which extended maturities and provided for a forbearance agreement with respect to all financial covenants. The forbearance runs until March 31, 2008. As of Sept. 30, 2007, the company had $11.1 million outstanding to M&T Bank, and is not in compliance with the tangible net worth covenant.

The downgrades are taken as a result of a deteriorating relationship between credit enhancement and expected loss. In addition, the B-2 classes in transactions prior to Conseco 2000-C originally had the benefit of a Limited Guarantee provided by the issuer. When Conseco filed for Chapter 11 bankruptcy protection in December 2002, the guarantee was terminated. Because the transactions were originally structured to include the Limited Guarantee support, many of the B-2 classes have been unable to maintain their original ratings.

The upgrades are taken as a result of a strengthening relationship between credit enhancement and expected loss and the affirmations are taken as a result of a stable relationship between credit enhancement and expected loss.

The rating actions incorporate Fitch's analysis regarding loan modification practices used by GreenTree Servicing on the Conseco/Green Tree HE and HI portfolios. For borrowers who have met certain criteria, the modifications primarily involve deferring delinquent payments until the end of the loan term and changing the borrower's payment status from delinquent to current. Management indicated that the company has recently tightened up the eligibility criteria for modifications. While Fitch believes modifications can provide the benefit of maintaining cash flow on a low-recovery asset and can potentially reduce cumulative losses to the trust, Fitch assumes the loan modifications affect the timing of losses by generally allowing for weaker borrowers to remain in the loan pool longer and for a greater percentage of defaults to be incurred later in the pool's life than would have been incurred otherwise. As a result, Fitch amended the projected default curve to account for the impact of the modifications to the timing of losses.

The projected loss that Fitch expects on the remaining collateral balances range from 5.1% to 20.1% for the HE portfolio and 3.8% to 18.9% for the HI portfolio. When added to cumulative losses to date, which range between 3.7% (Conseco 2000-C) and 9.4% (Conseco 2001-B Group 2) for the HE portfolio and 3.7% (Green Tree 1997-D) and 8.8% (Green Tree 1998-B) for the HI portfolio, the overall losses that Fitch expects, as a percentage of the original collateral balances, generally range from 5.0% to 12.4% for the HE portfolio and 3.8% to 9.4% for the HI portfolio.

The collateral of the above transactions consists of fixed- and adjustable-rate, closed-end mortgage loans secured by first or second liens on one- to four-family residential properties. The loans were originated by Green Tree Financial Corp. or Conseco Finance Corp. Conseco 2001-B B2 is a resecuritization of the B-2 class from Conseco 2001-B with the additional benefit of a reserve fund. The reserve fund was depleted in July 2004. All of the above transactions are serviced by GreenTree Servicing, which is rated 'RPS3+' by Fitch.

As of the Dec. 18, 2007 distribution date, the transaction's aggregate certificate balance has decreased by approximately 26.3% to $734.9 million from $997.1 million at securitization. The Certificates are collateralized by 116 mortgage loans. The loans range in size from less than 1.0% to 10.1% of the pool, with the top 10 loans representing 30.7% of the pool. Thirty-nine loans, representing 41.0% of the pool, have defeased and have been replaced with U.S. Government securities. Six loans have been liquidated, resulting in an aggregate realized loss of approximately $3.7 million. Two loans, representing 4.0% of the pool, are in special servicing. Moody's is estimating $4.2 million of losses from all the specially serviced loans. Twenty-nine loans, representing 27.8% of the pool, are on the master servicer's watchlist.

Moody's was provided with calendar year 2006 operating results for 95.0% of the performing loans. Moody's loan to value ratio for the conduit component is 81.3%, compared to 90.8% at Moody's last full review in October 2006 and compared to 84.5% at securitization. Moody's is upgrading Classes C, D, E, F, G and H due to defeasance, loan pay downs and improved loan performance.

The top three conduit loans represent 16.6% of the outstanding pool balance. The largest conduit loan is the Stonewood Center Mall Loan ($74.0 million - 10.1%), which is secured by a 630,000 square foot portion of a 931,000 square foot regional mall located approximately 13 miles southeast of Los Angeles, in Downey, California. The mall is anchored by J.C. Penney, Macy's, Sears and Mervyn's. As of June 2007 the mall was 98.6% leased, compared to 98.8% at last review and compared to 94.0% at securitization. The property has performed well and has benefited from amortization. Full year 2006 NOI was 14% higher than for 2005. Moody's LTV is 55.6%, compared to 64.1% at last review and compared to 74.4% at securitization.

The second largest conduit loan is the Alliance IJ Portfolio Loan ($27.3 million - 3.7%), which is secured by four multifamily properties located in Texas (3) and Indiana (1) with a total of 1,180 units. The loan was transferred to the special servicer in August 2006 due to over $2 million in deferred maintenance at the four properties. As of September 2007, occupancy ranged from 26% to 51% with the weighted average of 39.3% compared to 43.0% at last review and compared to 96.5% at securitization. The loan matures in November 2011. Moody's currently estimates losses of $3.8 million. Moody's LTV is in excess of 100.0%, as it was at last review, compared to 87.4% at securitization.

The third largest conduit loan is the Brea Union Plaza Phase II Loan ($20.9 million -- 2.8%), which is secured by a 175,000 square foot retail center located in Brea, California. Occupancy as of June 2007 was 100.0%, the same as at securitization. Performance has improved since securitization due to higher rent and stable expenses. The largest tenants are Home Life, Nordstrom Rack, and Staples; collectively, they occupy 61% of the space through 2014. Moody's LTV is 76.7% compared to 77.0% at last review and compared to 83.2% at securitization.

CWALT INC: Moody's Lowers Ratings on Nine Tranches to Low-B-----------------------------------------------------------Moody's Investors Service downgraded the ratings of twenty five tranches and has placed under review for possible downgrade the ratings of six tranches from eight transactions issued by Countrywide in 2007. One downgraded tranche remains on review for possible downgrade. The collateral backing these classes primarily consists of first lien, adjustable-rate negatively amortizing Alt-A mortgage loans.

The ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its analysis Moody's has also applied its published methodology updates to the non-delinquent portion of the transactions.

The rating was downgraded based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its analysis Moody's has also applied its published methodology updates to the non-delinquent portion of the transactions.

Complete rating actions are:

CWALT, Inc. Mortgage Pass-Through Certificates, Series 2007-AL1

-- Cl. A-1 Currently Aaa, on review for possible downgrade, -- Cl. A-2 Currently Aaa, on review for possible downgrade, -- Cl. A-3 Currently Aaa, on review for possible downgrade, -- Cl. X-P Currently Aaa, on review for possible downgrade, -- Cl. M-1 Currently Aa1, on review for possible downgrade, -- Cl. M-2 Currently Aa2, on review for possible downgrade, -- Cl. M-3 Currently Aa3, on review for possible downgrade, -- Cl. M-4 Currently A1, on review for possible downgrade, -- Cl. M-5 Currently A3, on review for possible downgrade, -- Cl. B-1 Currently Ba2, on review for possible downgrade.

Among other things, the agreement amends the DIP Term Sheet by extending the maturity date of the facility to March 31, 2008, subject to earlier termination upon an event of default or implementation of a plan of arrangement in Cygnal's proceedings under the Companies' Creditors Arrangement Act, and by extending to March 17, 2008 the date by which Cygnal must obtain creditor and court approval of a CCAA Plan.

About Cygnal Technologies

Based in Markham, Ontario, Cygnal Technologies Corporation(TSX: CYN) -- http://www.cygnal.ca/-- provides network communications solutions including the design, integration,installation, maintenance and management of wired and wirelesssolutions and networks. The company offers a full range oftechnologies and solutions for service providers and enterprisecustomers. Cygnal has expertise in voice, video and datasolutions over traditional and next generation convergedtechnologies. Cygnal supports end-user customers and businesspartners through 12 offices across Canada, including Vancouver,Edmonton, Calgary, Winnipeg, London, Burlington, Toronto, Ottawa,Montreal, Quebec City and Halifax.

CYGNAL TECHNOLOGIES: Wants Further Extension of Stay Under CCAA---------------------------------------------------------------Cygnal Technologies Corporation said it expects to seek the permission of the Ontario Superior Court of Justice to extend the period of the Court-ordered stay of proceedings against Cygnal and its wholly-owned subsidiaries, Cygnal Technologies Ltd. and Accord Communications Ltd., and their property under the Companies' Creditors Arrangement Act.

The period of the stay of proceedings currently ends on Jan. 31, 2008.

The purpose of the stay of proceedings is to provide the applicants with relief designed to stabilize their operations and business relationships with their customers, suppliers, employees, and creditors and to provide the applicants with an opportunity to develop a plan of arrangement to propose to creditors for the restructuring of, among other things, some or all of theapplicants' liabilities. The applicants are continuing their efforts to develop, with the input of their creditors and other stakeholders, a comprehensive restructuring plan to return the applicants to viability. The restructuring plan will likely include strategic, operational, financial and corporate elements. As part of this process, the Applicants are also preparinga formal CCAA plan for creditor and court approval. The opportunity for any recovery by holders of Cygnal's common shares under any plan is uncertain and Cygnal's common shares may be cancelled without any compensation pursuant to the plan.

About Cygnal Technologies

Based in Markham, Ontario, Cygnal Technologies Corporation(TSX: CYN) -- http://www.cygnal.ca/-- provides network communications solutions including the design, integration,installation, maintenance and management of wired and wirelesssolutions and networks. The company offers a full range oftechnologies and solutions for service providers and enterprisecustomers. Cygnal has expertise in voice, video and datasolutions over traditional and next generation convergedtechnologies. Cygnal supports end-user customers and businesspartners through 12 offices across Canada, including Vancouver,Edmonton, Calgary, Winnipeg, London, Burlington, Toronto, Ottawa,Montreal, Quebec City and Halifax.

DELPHI CORP: Gets $44.2 Mil. Bearing Biz Bid from ND Acquisition ----------------------------------------------------------------Delphi Automotive Systems LLC and Delphi Technologies, Inc., debtor-subsidiaries of Delphi Corp., intend to sell their global bearings business to ND Acquisition Corp., or to another party submitting a higher and better offer for the business.

The Bearings Business produces both wheel bearings and roller clutch product lines. It is the leading producer of Gen III wheel bearings in North America and the primary North American supplier of those parts to General Motors. The Bearings Business occupies a 1.3-million square foot plant set on 133 acres in Sandusky, Ohio.

The Debtors have invested more than $140,000,000 in new tooling and refurbishment for older equipment and new state-of-the-art machinery and equipment since 2000. The Bearings Business employs approximately 1,000 people, including approximately 775 Hourly Employees. The hourly workforce is represented by the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America.

Marketing Efforts for Non-Core Businesses

As previously reported, to achieve the necessary cost savings and operational effectiveness envisioned in its transformation plan, Delphi is streamlining its product portfolio to capitalize on its world-class technology and market strengths and make the necessary manufacturing realignment consistent with its new focus. As part of the company's transformation plan, the company identified the Bearings Business as a non-core business subject to disposition.

The Debtors believe that as a standalone business, the Bearings Business could become more profitable and competitive, and thus, have determined that the value of the Bearings Business would be maximized through its divestiture, relates John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois.

The Debtors, according to Mr. Butler, have actively marketed the Bearings Business since February 2007. After evaluating proposals submitted by potential buyers, the Debtors concluded that ND Acquisition offered the most advantageous terms and the greatest economic benefit.

Pursuant to a Sale and Purchase Agreement, entered into on January 15, 2008, the Debtors have agreed to sell the Bearings Business to ND Acquisition for $44,200,000, subject to certain adjustments, and subject to higher or otherwise better offers.

Bidding Procedures

The Debtors will accept and consider competing bids for the Bearings Business. The proposed Bidding Procedures provide, in relevant part:

(a) Participation Requirements: To ensure that only bidders with financial ability and a serious interest in the purchase of the Acquired Assets participate in the Bidding Process, the Bidding Procedures provide for certain requirements for a potential bidder to become a "Qualified Bidder", including the submission of certain financial assurances.

(b) Due Diligence: All Qualified Bidders would be afforded an opportunity to participate in the diligence process.

(c) Bid Deadline: All bids would have to be received not later than 11:00 a.m. prevailing Eastern time, by February 11, 2008. The Debtors would provide the UAW with notice of all Qualified Bidders and their contact information.

(d) Bid Requirements: All bids would be required to include certain documents, including a good-faith deposit of $750,000.

(e) Qualified Bids: To be deemed a "Qualified Bid," a bid would be required to be received by the Bid Deadline and, among other things, (i) be on terms and conditions that are substantially similar to, and are not materially more burdensome or conditional to the Debtors than, those contained in the Agreement, (ii) have a value of the Purchase Price plus the amount of the $1,500,000 Break-Up Fee and the Expense Reimbursement, plus $500,000 in the case of an initial Qualified Bid, plus $250,000 in the case of any subsequent Qualified Bids over the immediately preceding highest Qualified Bid.

(f) Conduct Of Auction: If the Debtors receive at least one Qualified Bid in addition to that of ND Acquisition, they would conduct an auction of the Acquired Assets at 10:00 a.m. (prevailing Eastern time) on February 13, 2008, or at a later date.

(g) Selection Of Successful Bid: After the conclusion of the Auction, the Debtors, in consultation with their advisors, would review each Qualified Bid and identify the highest or otherwise best offer for the Acquired Assets and the bidder making the bid. The Debtors would sell the Acquired Assets for the highest or otherwise best bid to the Successful Bidder upon the approval of the Court after the sale hearing.

(h) Sale Hearing: The Debtors request that the hearing to consider the sale to ND Acquisition, or the winning bidder, be scheduled for February 21, 2008, at 10:00 a.m., prevailing Eastern time. If the highest bidder fails to consummate the sale for specified reasons, then the second highest bid would be deemed to be the successful bid.

About Delphi Corp.

Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systemsand modules, and other electronic technology. The company'stechnology and products are present in more than 75 millionvehicles on the road worldwide. Delphi has regional headquartersin Japan, Brazil and France.

The Court approved Delphi's First Amended Joint DisclosureStatement and related solicitation procedures for thesolicitation of votes on the First Amended Plan on Dec. 20,2007. The Court will convene the hearing to considerconfirmation of the Plan on Jan. 17, 2008.

DELTA AIR: Commences Merger Negotiations with Northwest and UAL---------------------------------------------------------------Delta Air Lines Inc. obtained approval from its board of directors on Jan. 11, 2007, to engage in formal merger talks with both Northwest Airlines Corp. and UAL Corp., reports The Wall Street Journal.

WSJ says Delta, which is in the early stages of discussions with both Northwest and UAL, hopes to reach an agreement with one of them over the next two weeks.

Delta is anticipating a deal announcement as early as mid-February following Delta's board meeting scheduled early in the month, says the report.

"A special committee of the board is working with management to explore strategic options, including potential consolidation transactions. However, we are not providing updates, while this process is ongoing," Delta spokeswoman Betsy Talton, said.

Northwest and UAL declined to comment.

A UAL-Delta or a Northwest-Delta merger, which would likely be a stock for stock transaction, would make Delta the largest airline in the world, according to reports.

Experts in the airline industry, however, believe that a Northwest-Delta merger is more likely as Delta's Chief Executive Richard Anderson was previously CEO at Northwest, and is already well acquainted with Northwest's operations.

Senator Johnny Isakson, a Georgia Republican, said that Mr. Anderson told him in December that if there's a merger or an acquisition, Delta would keep its name and Atlanta hub, Bloomberg News reports.

The Debtors filed a chapter 11 plan of reorganization anddisclosure statement explaining that plan on Dec. 19, 2007. OnJan. 19, 2007, they filed revisions to the plan and disclosurestatement, and submitted further revisions to the plan onFeb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors'disclosure statement. In April 25, 2007, the Court confirmedthe Debtors' plan. That plan became effective onApril 30, 2007. The Court entered a final decree closing 17cases on Sept. 26, 2007.

As of Sept. 30, 2007, the company's balance sheet showed totalassets of $32.7 billion and total liabilities of $23 billion,resulting in a $9.7 billion stockholders' equity. At Dec. 31,2006, deficit was $13.5 billion.

As reported in yesterday's Troubled Company Reporter, according to Standard and Poor's, media reports that Delta Air Lines Inc. (B/Positive/--) entered into merger talks with UAL Corp. (B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) has no effect on its ratings or outlook on Delta, but that confirmed merger negotiations would result in S&P's placing ratings of Delta and other airlines involved on CreditWatch, most likely with developing or negative implications.

EDGEWATER FOODS: Posts $913,315 Net Loss in 1st Qtr. Ended Nov. 30 ------------------------------------------------------------------Edgewater Foods International Inc. reported a net loss of $913,315 on revenue of $429,202 for the first quarter ended Nov. 30, 2007, compared with a net loss of $3,105,123 on revenue of $123,187 in the same period ended Nov. 30, 2006.

Gross loss for the three months ended Nov. 30, 2007, was $105,648, as compared to gross loss of $67,882 for the three months ended Nov. 30, 2006.

General and administrative expenses for the three months ended Nov. 30, 2007, were $723,927. General and administrative expenses were $175,931 for the three months ended Nov. 30, 2006. The increase is directly attributable to stock compensation expense of approximately $39,000 and stock option expense of roughly $517,000.

For the three months ending Nov. 30, 2006, the company recognized a loss of $2,768,477 which was related to the change in the fair value of warrants issued to 10 institutional and accredited investors in conjunction with preferred stock financings on April 12, May 30, June 30, July 11, 2006, and Jan. 16, 2007, and the market price of the common stock underlying such warrants. As a result of reclassifying these warrant liabilities on Feb. 21, 2007, no such gain or loss was recorded for the period ended Nov. 30, 2007.

At Nov. 30, 2007, the company's consolidated balance sheet showed$7,391,008 in total assets, $1,853,055 in total liabilities, and $5,537,953 in total stockholders' equity.

LBB & Associates Ltd. LLP, in Houston, expressed substantial doubt about Edgewater Foods International Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Aug. 31, 2007. The auditing firm pointed to the company's absence of significant revenues, recurring losses from operations, and its needfor additional financing in order to fund its projected loss in 2008.

About Edgewater Foods

Based in Qualicum Beach, B.C., Edgewater Foods International Inc.(OTC BB: EDWT.OB) -- http://www.edgewaterfoods.com/-- is a Nevada Corporation and is the parent company of Island Scallops Ltd., a Vancouver Island aquaculture company. ISL was established in 1989 and for over 15 years has operated a scallop farming and marine hatchery business.

FBR SECURITIZATION: Losses Cues S&P's Rating Cuts on 20 Classes---------------------------------------------------------------Standard & Poor's Ratings Services lowered its ratings on 20 classes of mortgage pass-through certificates issued by FBR Securitization Trust's series 2005-3 and 2005-4 and Specialty Underwriting and Residential Finance Trust Series 2004-BC1. S&P downgraded eight of the classes to speculative-grade from investment-grade. Concurrently, S&P affirmed its ratings on all remaining classes from the three transactions.

The lowered ratings reflect adverse collateral performance that has caused monthly losses to exceed monthly excess interest. As of the January 2008 remittance period, the cumulative losses, as a percentage of the original pool balances, ranged from 1.31% (Specialty Underwriting and Residential Finance Trust Series 2004-BC1) to 1.92% (FBR Securitization Trust 2005-3). In all three transactions, overcollateralization (O/C) was below its target.

The delinquency pipeline in many of the transactions strongly suggests that the trend of monthly losses exceeding excess interest will continue, further compromising credit support. Severe delinquencies (90-plus days, foreclosures, and REOs) for the downgraded transactions ranged from 11.62% (Specialty Underwriting and Residential Finance Trust Series 2004-BC1) to 30.86% (FBR Securitization Trust 2005-3) of the current pool balances. These deals are seasoned between 23 months (FBR Securitization Trust 2005-4) and 44 months (Specialty Underwriting and Residential Finance Trust Series 2004-BC1).

S&P affirmed its ratings on the remaining classes based on loss coverage percentages that are sufficient to maintain the current ratings despite the negative trends in the underlying collateral of many of the deals.

Subordination, O/C, and excess spread provide credit support for all of the affected deals. The collateral for these transactions primarily consists of subprime adjustable- and fixed-rate mortgage loans secured by first liens on one- to four-family residential properties.

These actions reflect discussions with company management since the March 2007 CreditWatch placement regarding the status of Fremont's operations. Although the company no longer originates subprime mortgages, it will continue to service its existing subprime loans until the portfolio is sold or runs off. Despite the uncertainty of the mortgage company's business in 2007, employee turnover levels have remained acceptable, and there have been no considerable adverse affects on operations. Delinquencies have risen significantly, but this may be attributed both to market conditions and to the low credit quality of the remaining loans in the portfolio. On Jan. 14, 2008, Fremont announced that it had entered into a definitive agreement to sell the fixed assets and assign its lease obligation of its Irving, Texas, loan servicing facility. The company continues to maintain its primary loan servicing operations in Ontario, Calif.

Outlook

The outlook is stable. Standard & Poor's will continue its discussions with Fremont management about the future course of the business, and we will monitor data submitted through Standard & Poor's proprietary SEAM (Servicer Evaluation Analytical Methodology) questionnaire to ensure continued satisfactory performance. S&P will schedule a further review in the second quarter of 2008, or sooner if the company's current status changes. Standard & Poor's will continue to monitor Fremont and will adjust S&P's ranking and outlook as necessary.

* * *

Fremont Investment and Loan continues to carry Standard and Poor's 'B' long term foreign and local issuer credit rating assinged on May 22, 2007.

GENERAL MOTORS: Outlines Turnaround Progress and 2008 Priorities----------------------------------------------------------------General Motors Corp. Chairman and CEO Rick Wagoner and Vice Chairman and CFO Fritz Henderson spoke to automotive analysts at a GM conference on Jan. 17, 2008, giving detailed reviews of the company's turnaround progress, outlining the automaker's priorities for the year and providing a preview of improvement opportunities for 2010 and beyond.

"We're delivering on the turnaround plan we established in 2005, and have exceeded expectations on virtually all counts," Mr. Wagoner said. "We've set a strong foundation that we can truly build on. We're encouraged by our progress in revitalizing our product portfolio, strengthening our brands, reducing structural cost and growing the business globally. At the same time, it's clear that we'll face some challenging headwinds in 2008.

"To continue driving the company's transformation, we'll remain steadfast in our efforts to introduce great cars and trucks and new advanced propulsion technologies, take full advantage of growth markets around the world, and accelerate our efforts to reduce structural costs to even more competitive levels in North America," Mr. Wagoner added.

Turnaround Progress

Since introducing its North America turnaround plan in 2005, GM has delivered significant progress in its massive restructuring, including:

a) Product excellence

Dramatically improved vehicle design and performance is gaining broad recognition, demonstrated by robust sales of recently launched vehicles and numerous industry awards, including 2008 North America Car of the Year for the Chevrolet Malibu, 2008 Motor Trend Car of the Year for the Cadillac CTS, and 2007 North America Car and Truck of the Year awards for the Saturn Aura and Chevrolet Silverado;

b) Revitalize the sales and marketing strategy

The company has fundamentally changed its "go to market" approach, resulting in stronger brands, re-alignment of its brand distribution channels, stabilized retail market share, significant reductions in daily rental sales and higher average transaction prices;

c) Intensify the focus on cost and quality

GM reduced annual structural cost in North America from 2005 to 2007 by $9 billion, driven by the 2005 hourly healthcare agreement, revisions to U.S. salaried healthcare and pension programs, capacity reduction actions, special attrition programs for 34,000 hourly employees, and efficiencies achieved in other activities. Significant improvements also continue to be made in vehicle quality, as measured by both internal and industry metrics;

d) Address healthcare/legacy cost burden

Reflecting the impact of historical agreements with the United Auto Workers union and several other key initiatives, GM anticipates that its spending on U.S. hourly and salaried pension and healthcare will be reduced from an average of $7 billion per year over the last 15 years, to approximately $1 billion per year beginning in 2010.

Despite continued pressures in the German market, GM has also made significant progress in its Europe operations, driven by strong new products, successful implementation of its multi-brand strategy, especially the rapid growth of the Chevrolet brand, which contributed to record GME unit sales of over 2 million in 2007. Rapid expansion in Russia and Eastern Europe, and further structural cost reductions have also contributed to the improvements.

GM's total automotive results have demonstrated strong progress since 2005, marked by significant improvements in both adjusted net income and adjusted operating cash flow through the first three quarters of 2007. GM continues to have strong liquidity, with 2007 year-end gross liquidity estimated to be more than $27 billion, up from $20.4 billion at year-end 2005.

2008 Outlook

Acknowledging headwinds facing the industry, including weak U.S. auto industry sales volumes, high fuel prices, high commodity and steel prices, and mounting regulatory requirements, Mr. Wagoner outlined the following focus areas for 2008 designed to continue the momentum and achieve improved financial results:

-- Continue to execute great products;

-- Build strong brands and distribution channels;

-- Execute additional cost reduction initiatives;

-- Take full advantage of growth in emerging markets;

-- Build GM's advanced propulsion leadership position; and

-- Maximize the benefits of running the business globally.

For 2008, GM projects global industry volume to reach a record high of approximately 73 million units, up from about 71 million in 2007, with growth in Asia Pacific, Latin America, Africa and the Middle East and Europe. GM anticipates U.S. industry sales will likely be in the low 16-million range, reflecting continuing high fuel prices and sub-par consumer confidence. Despite industry pressures, GM expects to increase revenues in all of its regions, particularly in emerging markets.

Building on notable product successes including the Cadillac CTS, Chevrolet Malibu, GMC Acadia, Saturn Outlook and Buick Enclave in the U.S. and the Opel Corsa in Europe, GM will continue to introduce a host of new products including the Pontiac G8 and Chevrolet Traverse in the U.S. and Opel Insignia in Europe. Capital spending is projected to be up slightly from 2007 levels to about $8 billion in 2008.

On the sales and marketing front, GM will continue its efforts -- most clearly demonstrated in the recent launch of the Chevy Malibu in the U.S. -- to more effectively integrate product and brand marketing strategies. GM will accelerate the alignment of its seven U.S. brands into four distinct dealer channels: Chevrolet, Saturn, Buick/Pontiac/GMC and Cadillac/Hummer/SAAB. By doing this, the company expects to enhance dealer profitability and over time facilitate more highly differentiated products and brands.

With regard to cost competitiveness, GM has made major strides toward achieving its global target of reducing automotive structural costs to benchmark levels of 25% of revenue by 2010. Structural costs are already below 30%, compared to 34% in 2005, despite weaker than expected U.S. industry volumes. In light of the progress already made, the company fully expects structural costs as a percentage of revenue to be further reduced beyond 2010, with a target of 23% by 2012.

In support of those goals, the company plans to reduce annual U.S. labor costs by an additional estimated $5 billion by 2011.

A significant portion of those reductions will be driven by the implementation of the 2007 GM-UAW contract, including the independent healthcare VEBA scheduled to begin in 2010, and in the shorter term by taking full advantage of the workforce restructuring opportunities included in the contract, including a "non-core" wage and benefit structure which will result in the re-classification of a significant number of jobs over time.

To facilitate these changes, GM launched, in cooperation with the UAW, the first phase of a voluntary special attrition program for hourly workers in January 2008. This phase applies to those at select job banks, Service Parts Operations, and other key sites. Employees participating in this phase will begin to exit in March. GM disclosed that Phase 2 of the program, under active discussion with the UAW, will be launched in February in all other plants. Participating employees will begin exiting in April. For both phases of the program, 46,000 existing employees are eligible for retirement.

During the conference, GM also reiterated its strategy to achieve manufacturing capacity utilization of 100%, or greater, in countries with higher labor costs. Based on current U.S. industry volume levels, additional capacity actions would be required in vehicle assembly, stamping and powertrain facilities. The company will continue to assess U.S. industry and product mix trends, and what potential actions may be required over the coming months.

GM will continue its aggressive plans to grow in emerging markets such as China, Brazil, Russia and India. To strengthen its position in China, where it was the first automaker to sell 1 million units in a single year, GM intends to continue to build its corporate reputation, expand its product portfolio with fuel-efficient products, drive full implementation of its multi-brand strategy, expand capacity, and develop our local supply base and technology capability.

At GMAC Financial Services, while its mortgage business faces continued challenges relating to weaknesses in the housing and credit markets, its auto financing business remains profitable and its insurance operations continue to perform well. GMAC expects Residential Capital, LLC to meet its year-end 2007 financial covenants, and GM believes GMAC remains adequately capitalized.

In addition, GMAC's liquidity position is at relatively high historical levels and GMAC expects to be profitable in 2008, with substantially reduced losses at ResCap due to risk mitigation actions undertaken by the company.

Looking Ahead to 2010

Looking ahead, GM expects continued cost savings and improved automotive pre-tax earnings by 2010, compared to 2007 levels, driven by a number of factors.

The most significant savings is the estimated $4-5 billion GM expects to gain in 2010 once it realizes the full-impact of the 2007 GM-UAW labor agreement related to the shift of U.S. hourly health care to an independent VEBA, and takes advantage of favorable labor demographics to adjust workforce levels and transition a portion of the workforce to the new non-core wage structure.

In addition, GM will reduce the cost premiums it has historically paid to Delphi for systems, components and parts by approximately $1 billion by 2010. Those savings will be offset by various labor and transitional subsidies of $400-500 million under Delphi's proposed reorganization, resulting in net savings of approximately $500 million.

GM also sees the probability of a stronger U.S. industry in 2009 and beyond, as compared to the relatively low 16.5 million total industry in 2007. All indications are that 16.5 million units are approximately 1 million units below trend. It is estimated that a move of the industry back to trend levels by 2010 would generate additional pre-tax income to GM in the range of approximately $1 billion to $1.5 billion annually.

Beyond these factors, there are a number of additional opportunities to further improve GM earnings and cash flow by 2010, though they are more difficult to predict with specificity. These include: additional material cost reductions due to continued leveraging of global vehicle architectures, improved pricing driven by compelling designs and stronger brands, continued explosive growth in revenue and profitability in emerging markets, and improved performance at GMAC.

At the same time, continued U.S. industry product mix deterioration, regulatory cost increases and the ongoing competitiveness of the marketplace pose potential risks to GM's profitability.

Considering the foregoing, GM management expects to significantly improve operating results, including earnings and cash flow, over the next two to three years.

About GM

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars andtrucks in 33 countries, including the United Kingdom, Germany,France, Russia, Brazil and India. In 2006, nearly 9.1 million GMcars and trucks were sold globally under the following brands:Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is theindustry leader in vehicle safety, security and informationservices.

* * *

As reported in the Troubled Company Reporter on Nov. 9, 2007,Moody's Investors Service affirmed its rating for General MotorsCorporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1senior unsecured and SGL-1 Speculative Grade Liquidity rating) butchanged the outlook to Stable from Positive. In an environment ofweakening prospects for US auto sales GM has announced that itwill take a non-cash charge of $39 billion for the third quarterof 2007 related to establishing a valuation allowance against itsdeferred tax assets (DTAs) in the US, Canada and Germany.

As reported in the Troubled Company Reporter on Oct. 23, 2007,Standard & Poor's Ratings Services affirmed its 'B' corporatecredit rating and other ratings on General Motors Corp. andremoved them from CreditWatch with positive implications, wherethey were placed Sept. 26, 2007, following agreement on the newlabor contract. The outlook is stable.

GENESIS PHARMACEUTICALS: Sherb & Co. Raises Going Concern Doubt---------------------------------------------------------------Sherb & Co., LLP, in Boca Raton, Fla., expressed substantial doubt about the ability of Genesis Pharmaceuticals Enterprises, Inc. to continue as a going concern after it audited the company's financial statements for the year ended Sept. 30, 2007. The auditing firm pointed to the company's accumulated deficit and net loss for the year ended Sept. 30, 2007.

The company posted a net loss of $5,820,584 on net revenues of $3,035,000 for the year ended Sept. 30, 2007, compared with a net income of $2,909,606 on net revenues of $6,750,229 in the prior year.

As of Sept. 30, 2007, the company has total current assets of $945,900 to pay its total current liabilities of $2,052,324.

At Sept. 30, 2007, the company's balance sheet showed $5,949,792 in total assets, $2,173,387 in total liabilities, and a stockholders' equity of $3,776,405.

Genesis Pharmaceutical Enterprises (OTC BB:GTEC.OB), formerly Genesis Technology Group, operates primarily through subsidiary Laiyang Jiangbo, a China-based contract pharmaceutical manufacturer. Genesis Technology became Genesis Pharmaceutical in October 2007 in conjunction with a reverse merger in which the controlling shareholders of Laiyang Jiangbo wound up with a 75% stake in the new company.

GLOBAL CREDIT: S&P Places BB- Rating Under Negative Watch---------------------------------------------------------Standard & Poor's Ratings Services placed its ratings on the issue of Global Credit Pref Corp.'s preferred shares on CreditWatch with negative implications. The CreditWatch placement mirrors the CreditWatch action on the credit-linked note to which the issue of preferred shares is linked.

Standard & Poor's will continue to monitor the underlying portfolio and expects to resolve the CreditWatch placement within a period of 90 days and update its opinion.

GRAFTECH INTL: S&P Ratings Unmoved by $125MM Notes' Redemption--------------------------------------------------------------Standard & Poor Ratings Services said that its rating and outlook on graphite electrodes manufacturer Graftech International Ltd. (B+/Positive/--) are not affected at this time by the company's announcement that it will redeem $125 million of its outstanding 10.25% senior notes due 2012.

The company expects to carry out the optional redemption on or about Feb. 15, 2008. It will be funded through the combination of cash flow from operations and other financing activities. Upon completion of the planned redemption, $75 million in principal amount of the senior notes will be outstanding.

The ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its analysis Moody's has also applied its published methodology updates to the non-delinquent portion of the transactions.

Fitch does not rate the $22.4 million class Q. Classes A-1 and the non-rated class SWD-B are paid in full.

The ratings affirmations are the result of continued stable performance. As of the December 2007 distribution date, the pool's aggregate certificate balance has decreased 16.4%, to $985.1 million from $1.2 billion at issuance. To date, 19 loans (25.4%) have defeased, including three (15.1%) of the top 10 loans in the pool.

There is currently one specially serviced asset (0.6%), which is secured by a mixed-use property located in Kingwood, Texas. The loan remains current under a forbearance agreement and no losses are anticipated.

HANOVER INSURANCE: Moody's Reviews Ba1 Rating for Possible Cut--------------------------------------------------------------Moody's Investors Service placed the Ba1 senior debt rating of The Hanover Insurance Group, Inc. and the Baa1 insurance financial strength rating of its subsidiary, Hanover Insurance Company, on review for possible upgrade. The decision to review the ratings for possible upgrade reflects a continuation of favorable trends which have become clearer over the past year, particularly as they relate to risk-adjusted capitalization and business flow. The Ba1 insurance financial strength rating and stable outlook on the run-off life insurance subsidiary, First Allmerica Financial Life Insurance Co., remain unaffected by this rating action.

The review for upgrade will focus on the company's plans for capital management activities (including additional acquisitions) and financial leverage. These items carry particular importance given the company's geographic concentration in a limited number of states. These states have been historically challenging for insurers and/or are vulnerable to natural catastrophes. In particular, Michigan, Massachusetts, New York, New Jersey, Louisiana and Florida make up the company's top six states and represent over 70% of total direct written premiums. The review will also focus on the company's immediate plans in Massachusetts, where regulators will soon allow auto insurers to establish their own rates, subject to certain conditions and regulatory approval.

In the short term, Moody's expects continued strengthening of risk-adjusted capitalization (as measured in part by gross underwriting leverage below 3.2 times), overall combined ratios in the high 90's assuming a normal level of catastrophe losses, positive business flow from agents, a ratio of holding company cash and invested assets to total debt greater than 40%, and prudent capital management.

The last rating action on The Hanover Insurance Group, Inc. occurred on Dec. 7, 2006 when Moody's changed the rating outlook to positive from stable.

The Hanover Insurance Group, formerly Allmerica Financial Corporation, is a holding company for its insurance subsidiaries, which collectively rank among the top 35 property and casualty insurers in the United States. THG operates as The Hanover Insurance Company, except in Michigan and other Midwest states where it does business as Citizens Insurance Company of America. It offers a range of property and casualty insurance products to individuals and business owners through its network of over 2,000 independent agents. For the first nine months of 2007, THG reported net premiums written of $1.9 billion and net income of $177 million. As of Sept. 30, 2007, shareholders' equity was $2.2 billion.

HARBORVIEW MORTGAGE: Moody's Downgrades Ratings on 18 Tranches--------------------------------------------------------------Moody's Investors Service downgraded the ratings of eighteen tranches and has placed under review for possible downgrade the ratings of two tranches from five transactions issued by HarborView Mortgage Loan Trust 2007. The collateral backing these classes primarily consists of first lien, adjustable-rate negatively amortizing Alt-A mortgage loans.

The ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its analysis Moody's has also applied its published methodology updates to the non-delinquent portion of the transactions.

HAVEN HEALTHCARE: Committee Hires Pepper Hamilton as Counsel------------------------------------------------------------The Official Committee of Unsecured Creditors of Haven Healthcare Management LLC and its debtor-affiliates' bankruptcy cases obtained authority from the United States Bankruptcy Court for the District of Connecticut to employ Pepper Hamilton LLP as their attorneys.

Pepper Hamilton is expected to:

a) advise the Committee with respect to its rights, duties and powers in these cases;

b) assist and advise the Committee in its consultations with the Debtors relating to the administration of these cases;

c) assist the Committee in analyzing the claims of the Debtors' creditors and the Debtors' capital structure and in negotiating with the holders of claims and, if appropriate, equity interests;

d) assist the Committee's investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors and other parties involved with the Debtors, and of the operation of the Debtors businesses;

e) assist the Committee in analyzing intercompany transactions;

f) assist the Committee in its analysis of, and negotiations with the Debtors or any other third party concerning matters related to, among others things, executory contracts, asset dispostions, financing of other transactions and the terms of a plan of reorganization for the Debtors and accompanying disclosure statement and related plan documents;

g) assist and advise the Committee as to its communications, if any, to the general creditor body regarding significant matters in these cases;

h) represent the Committee at all hearings and other proceedings;

i) review, analyze, and advise the Committee with respect to all applications, orders, statements of operations and schedules filed with the Court;

j) assist the Committee in preparing pleadings and applications as may be necessary in furtherance of the Committee's interestsa and objectives; and

k) perfom other services as may be required and are deemed to be in the interest of the Committee in accordance with the Committee's powers and duties as set forth in the Bankruptcy Code.

Robert S. Hertzberg, Esq., a partner of the firm, assures the Court that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code.

Headquartered in Middletown, Connecticut, Haven Healthcare Management LLC -- http://www.havenhealthcare.com/-- provide nursing care to the elderly in New England, Connecticut. The company operates health centers and assisted living facilities. In addition, the company specializes in short-term rehabilitative care and long-term care. The company and 46 of its affiliates filed for Chapter 11 protection on November 22, 2007 (Bankr. D. Conn. Lead Case No. 07-32719). Moses and Singer LLP is the Debtors' proposed counsel. The Debtor selects Kurtzman Carson Consultants LLC as claims and noticing agent. The U.S. Trustee for Region 2 appointed nine creditors to serve on an Official Committee of Unsecured Creditors in this cases. When the Debtors filed for protection against their creditors, it listed assets and debt between $1 Million to $100 Million. The Debtors' consolidated list of their 50 largest unsecured creditors showed total claims of more than $20 million.

HEARTLAND AUTO: Gets Initial OK to Use Lenders' Cash Collateral---------------------------------------------------------------The United States Bankruptcy Court for the Northern District of Texas granted Heartland Automotive Holdings Inc. and its debtor-affiliates access, on an interim basis, to several secured lenders' cash collateral, until Jan. 23, 2008.

The Debtors tell the Court that the cash collateral is requiredto fund their operations and preserve the value of their assets as a going concern. Specifically,the Debtors point out, the cash collateral will also be used to fund payroll and other operating needs, including the costs of administration of their chapter 11 cases.

As adequate protection, the Debtors granted the secured lenders:

i) continuing maintenance and preservation of the prepetition collateral for the benefit of the secured lenders; and

ii) postpetition replacement liens and security interests in all property of the Debtors.

A final hearing has been set on Jan. 23, 2008, at 3:00 p.m., at the Hon. D. Michael Lynn's courtroom in Fort Worth.

Based in Omaha, Nebraska, Heartland Automotive Holdings, Inc. --http://www.heartlandjiffylube.com/-- operates quick-oil-change stores in the U.S. The company and its nine affiliates filed forChapter 11 protection on Jan. 7, 2008 (Bank. N.D. Tex. Case No.08-40057). Jeff P. Prostok, Esq., at Forshey & Prostok, L.L.P.represents the Debtors in their restructuring efforts. The U.S. Trustee for Region 6 has not appointed creditors to serve on an Official Committee of Unsecred creditors in this case. When theDebtor files for protection from their creditors its listedestimated assets and debts between $100 million and $500 million.

As reported in the Troubled Company Reporter on Jan. 16, 2008, the Debtors ask the Court's permission to secure a $10 million postpetition financing from an affiliate of Quad-C Partners VI,LP.

The downgrade of Hovnanian's preferred stock follows the company's nonpayment of the scheduled quarterly dividend on its $140 million series A preferred stock, which was due Jan. 15, 2008. As expected, the company did not make the payment because a bond covenant governing Hovnanian's unsecured notes restricts dividend payments if fixed-charge coverage falls below 2.0x. Hovnanian's fixed-charge coverage was below the 2.0x covenant minimum for the 12 months ended Oct. 31, 2007, and the January dividend payment was restricted.

Dividends on the series A preferred stock are not cumulative, which means holders will not have the right to receive unpaid dividends. Holders of the series A preferred stock generally do not have voting rights. However, if Hovnanian does not pay dividends on the series A preferred stock in an aggregate amount equal to at least six full quarterly dividend payments (whether or not consecutive), holders of the series A preferred stock and any such other class or series of preferred stock (voting as a single class) will be entitled to nominate two persons as advisory directors to attend, but not vote at, certain board of directors meetings until full dividends have been paid for at least four consecutive quarterly dividend periods. In addition, certain materially adverse changes to the terms of the series A preferred stock cannot be made without the affirmative vote by holders of at least a majority of the shares of series A preferred stock.

Hovnanian was granted a temporary waiver from its bank lenders after it violated its tangible net worth and leverage covenants in its fourth quarter ended Oct. 31, 2007. S&P has placed all other Hovnanian-related ratings on CreditWatch pending the completion of the company's negotiations with its bank group to amend its credit facility and receive adequate covenant relief to operate through this housing cycle. These ratings will also remain on CreditWatch pending future meeting with management to review its plan for 2008. The resolution of the CreditWatch placements hinges on a review of Hovnanian's strategies and the company's capacity to reduce inventory, generate cash, and reduce debt in the coming year.

IKONA GEAR: Nov. 30 Balance Sheet Upside-Down by $51,380--------------------------------------------------------Ikona Gear International Inc.'s consolidated balance sheet at Nov. 30, 2007, showed $1.79 million in total assets and $1.84 million in total liabilities, resulting in a $51,380 total stockholders' deficit.

At Nov. 30, 2007, the company's consolidated balance sheet also showed strained liquidity with $1.49 million in total current assets available to pay $1.83 million in total current liabilities.

The company reported a net loss of $704,127 on total revenue of $703,060 for the first quarter ended Nov. 30, 2007, compared with a net loss of $706,111 on total revenue of $111,377 for the same period ended Nov. 30, 2006.

The increase in revenue reflects an increase in delivery of drawworks and oil and gas equipment.

Based in Coquitlam, British Columbia, Canada, Ikona Gear Internationald Inc. (OTC BB: IKGIE) -- http://www.ikonagear.com/- - is a custom designer of gearing applications. The company provides gear design and mechanical design services to product manufacturers who would like exclusive rights to incorporate the company's gearing technology into their products.

INDUSTRIAL DEV'T: Fitch Cuts Rating on Series 1997A Bonds to B+ ---------------------------------------------------------------Fitch Ratings has downgraded the Industrial Development Authority of the County of Henrico, Virginia Solid Waste Disposal revenue bonds (Browning-Ferris Industries of South Atlantic, Inc. Project) series 1997A to 'B+' from 'A-'.

The 'B+' rating reflects the Issuer Default Rating of the guarantor, Browning-Ferris Industries. The rating on the Browning-Ferris Industries of South Atlantic, Inc. Project, series 1997A bonds is withdrawn.

ING RE (UK): Chap. 15 Petition Hearing Set for January 30---------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of New Yorkwill convene a hearing at 9:30 a.m. on Jan. 30, 2008, to consider the Chapter 15 petition filed on Jan. 4, 2008 by Michael Larry Emerson as foreign representative of I.N.G. Re (U.K.), Ltd.

Interested parties have until 4:00 p.m., New York time on Jan. 23, 2008, to file their responses or objections to the petition.

Lawyers at Clifford Chance U.S., L.L.P. in New York City represent the Foreign Representative in this case.

About ING Re (U.K.), Ltd.

ING Re (U.K.), Ltd. -- http://www.ing-re.co.uk/-- provided accident and health reinsurance services and was also engaged in the retrocession business in the U.K. since 1997.

ING Re (U.K.), Ltd. ceased its business and went into run-off in 2002. However, since it expected the run-off of its business to continue for a number of years, it had proposed a solvent scheme of arrangement under Section 425 of the U.K. Companies Act of 1985 as the most efficient and effective method of making full payment to its creditors in the shortest practical time.

On Sept. 21, 2007, the ING Re (U.K.), Ltd. sought permission from the High Court of Justice of England and Wales in the U.K. to convene a meeting with the creditors to allow them to vote on the Scheme of Arrangement. On Oct. 31, 2007, the court gave the sought permission. On Dec. 19, 2007, the meeting between the ING Re (U.K.), Ltd. and the creditors was convened.

INPHONIC INC: Wants Court to Set February 28 as Claims Bar Date---------------------------------------------------------------InPhonic Inc. and its debtor-affiliates ask the United States Bankruptcy Court for the District of Delaware to establish Feb. 28, 2008, as deadline for creditors to file proofs of claims.

The Debtors also propose May 6, 2008, as last date for governmental units.

The Debtors tell the Court that they need sufficient time to inform all known entities that may hold claims against the Debtors.

A hearing has been set on Jan. 30, 2008, at 3:00 p.m., to consider approval of the Debtors' request. Objection to approval must be filed before Jan. 23, 2008.

Headquartered in Washington, DC, InPhonic Inc. (NASDAQ:INPC)--http://www.inphonic.com/-- is an online seller of wireless services in the United States. The company operates its businessthrough three business segments: wireless activation and services;mobile virtual network enabler services, and data services.

The company and its debtor-affiliates filed for Chapter 11protection on Nov. 8, 2007 (Bankr. D. Del. Case Nos. 07-11666 to07-11673). Mary E. Augustine, Esq., and Neil B. Glassman, Esq.,at The Bayard Firm, in Wilmington, Delaware, represent theDebtors. The Debtors selected BMC Group Inc. as their claims,noticing and balloting agent. The United States Trustee forRegion 3 appointed five creditors to serve on an OfficialCommittee of Unsecured Creditors in the Debtors' cases.

When the Debtors filed from protection from their creditors,they listed total assets of $120,916,991 and total debts of$179,402,834.

IWT TESORO: Withdraws Exclusive Periods Extension Plea------------------------------------------------------IWT Tesoro Corporation and its debtor-affiliates has withdrawn, without prejudice, their request to further extend their exclusive periods.

Paper filed with the United States Bankruptcy Court for the Southern District of New York did not cite any reasons why the request was withdrawn.

As reported in the Troubled Company Reporter on Jan. 2, 2008,the Debtors ask the Court to further extend their exclusive period to file a plan for 120 days, and solicit acceptances of that plan for 180 days. The Debtors told the Court that they need sufficient time to formulate a consensual Chapter 11 plan of reorganization as they continue their negotiations with their proposed funder, KMA Capital, and the Official Committee of Unsecured Creditors.

I.W.T. Tesoro Corporation, fka Ponca Acquisition Company, --http://www.iwttesoro.com/-- is headquartered in New York City. The company and its subsidiaries distribute building materials,specifically hard floor and wall coverings. They arewholesalers and do not sell directly to any end user. Theirproducts consist of ceramic, porcelain and natural stone floor,wall and decorative tile. They import a majority of theseproducts from suppliers and manufacturers in Europe, SouthAmerica (Brazil), and the Near and Far East. Their marketsinclude the United States and Canada. They also offer privatelabel programs for branded retail sales customers, buyinggroups, large homebuilders and home center store chains.

The Debtor and its debtor-affiliates, International WholesaleTile, Inc. and American Gres, Inc., filed for Chapter 11bankruptcy protection on Sept. 6, 2007 (Bankr. S.D. NY Lead CaseNo. 07-12841). John K. Sherwood, Esq., at Lowenstein SandlerP.C., represents the Official Committee of Unsecured Creditors.As of June 30, 2007, the Debtors had total assets of $39,798,579and total debts of $47,940,983.

JOHN CHEZIK: Punitive Damages Double Initial Verdict of $8.4 Mil. -----------------------------------------------------------------Bankrupt John Chezik Homerun Inc. and its parent company, A&L Holding Co.'s judgment in a class action suit has doubled from $8.4 million after accounting for professional fees, Dan Margilies writes for The Kansas City Star.

The Hon. Rex Gabbert of the Circuit Court for Clay County accorded the plaintiffs $2.8 million legal fees and $4.8 million prejudgment interest, Star reports. In addition, Judge Gabbert accorded the plaintiffs $100,000 for legal expenses, $35,000 "incentive" to two lead plaintiffs and 10.25% judgment interest as of May 9, 2007, Star relates.

Early this week, Judge Gabbert consolidated damages that overlapped and got a sum of $7.3 million, Star reveals.

Corporate counsel, Robert O. Jester, Esq., at Ensz & Jester, told Star that the company intends to file and appeal on Judge Gabbert's final judgment.

Meanwhile, plaintiff's counsel indicated plans to seek judgment against Honda of Tiffany Springs, which bought John Chezik two years ago, Star says.

Money-Back Guarantee Class Action Suit

Keith and Deborah Shackleford residing at Gladstone filed a case against the Debtor in 2002 against John Chezik, which operates John Chezik Honda in a class action relating to a "100 percent money-back guarantee" that the company offered on its vehicle service contracts.

The class consisted of 1,186 customers who bought contracts fromJan. 1, 1997, to Dec. 22, 2003, and who got the money-backguarantees and made no claim under the contracts.

Law firm Blackwell Sanders Peper Martin LLP commenced the suiton behalf of named plaintiffs Keith and Deborah Shackelford, whobought a 1995 Honda Accord from the company. The Shackelfordsalso bought a service contract, which said a customer would berefunded the entire cost of the contract if no claims were madeon it.

The Shackelfords said they made no claims. They returned to the dealership in April 2002 to request their refund but allegedly were told they could receive only credit toward another car purchase. The dealership offered to refund the Shackelfords' money after talks with their lawyers, but the company refused to pay legal fees and other costs.

In May 9, 2007, Clay County Circuit Court jury awarded more than $3.4 million in actual damages to certain buyers of vehicles sold by auto dealer John Chezik and A&L Holding.

The jurors originally agreed upon a settlement of $8.4 million. However, the amount for punitive damages had to be adjustedpursuant to Missouri law. Aside from that, they returned twoseparate judgments for punitive damages for $5 million, subject to court's final judgment.

About John Chezik Homerun

Kansas City, Missouri-based John Chezik Homerun Inc. dba John Chezik Honda is a subsidiary of A&L Holding Co. It retails new and used cars. Honda of Tiffany Springs acquired Chezik's assets in 2005. In December 2007, John Chezik filed for bankruptcy protection under chapter 7 in hopes to pay off debts, specifically those of class action claimants.

As reported in the Troubled Company Reporter on Jan. 8, 2008,Benesch Friendlander is expected to:

a) advise the Debtors of their rights, powers and duties as debtors in possession that are continuing to operate and manage their businesses and property;

b) attending meetings and negotiations with representative of creditors and other parties in interest;

c) prepare on behalf of the Debtors all necessary and appropriate applications, motions, pleadings, draft orders, notices, schedules, and other documents, and reviewing all financial and other reports to be filed with the Court in these Chapter 11 cases;

d) advise the Debtors concerning, and preparing responses to, applications, motions, pleadings, notices and other papers that may be filed and served in these Chapter 11 cases;

e) advise the Debtors concerning, and assisting in the negotiation and documentation of, the refinancing or sale of their assets, debt and lease restructuring, executory contract and unexpired lease assumptions, assignments or rejections, and related transactions;

f) review the nature and validity of liens asserted against the Debtors' property and advising the Debtors concerning the enforceability of the liens;

g) advising the Debtors concerning the actions that they might take to collect and recover property for the benefit of their estates;

h) counsel the Debtors in connection with the formulation, negotiation, and confirmation of plan or plans of reorganization and related documents; and

i) perform other legal services for and on behalf of the Debtors as may be necessary or appropriate in the administration of their Chapter 11 cases and businesses, including advising assisting the Debtors with respect to debt restructuri8ng, corporate governance issues related to restructuring, stock or asset dispositions and general business and litigation matters.

Before the Debtors filed for bankruptcy, they paid the firmapproximately $194,948 for legal services in connection with theevaluation of their financial restructuring alternatives and firstday documents and pleadings.

Headquatered in Middlefield, Ohio, Johnson Rubber CompanyInc. -- http://www.johnsonrubber.com/-- designs, develops and manufactures polymer components. The company and itsparent, JR Holding Corp., filed for Chapter 11 protection onDecember 11, 2007 (Bankr. N.D. Ohio, Lead Case No. 07-19391). TheDebtors selected Donlin Recano as claims, noticing and ballotingagent. The United States Trustee for Region 9 appointed four creditors to serve on an Official Committee of Unsecured Creditors in this cases. When the Debtors filed for protection against their creditors, they listed total assets at $15,346,607 andtotal debts at $19,869,931.

JOHNSON RUBBER: Development Specialists OK'd as Financial Advisor-----------------------------------------------------------------The Hon. Randolph Baxter of the United States Bankruptcy Court Northern District of Ohio gave Johnson Rubber Company Inc. and its parent holding company, JR Holding Corp., permission to employ Development Specialist Inc. as their financial advisor.

As reported in the Troubled Company Reporter on Jan 8, 2008,Development Specialists is expected to:

a) assist the Debtors' development, review and evaluation of its overall restructuring plan and aid in its implementation;

b) assist the Debtors with the development and preparation of financially oriented analyses and reports and provide other assistance to its financial reorganization;

c) participate in negotiations with creditors, stakeholders, and other appropriate parties in connection with any reorganization or wind down plan;

d) assist in the development and implementation of a short-term budget, cash flow projections and operating plans;

e) assist in the preparation of required bankruptcy schedules and statement of financial affairs as well as periodic reports to be submitted to a Bankruptcy Court; and

f) perform other tasks as may be agreed to by the firm and directed by the Debtors.

Patrick J. O'Malley, a consultanht and cheif official officer ofthe firm, assures the Court that the firm is a "disinterestedperson" as defined in Section 101(14) of the Bankruptcy Code.

Headquatered in Middlefield, Ohio, Johnson Rubber CompanyInc. -- http://www.johnsonrubber.com/-- designs, develops and manufactures polymer components. The company and itsparent, JR Holding Corp., filed for Chapter 11 protection onDecember 11, 2007 (Bankr. N.D. Ohio, Lead Case No. 07-19391). TheDebtors selected Donlin Recano as claims, noticing and ballotingagent. The United States Trustee for Region 9 appointed four creditors to serve on an Official Committee of Unsecured Creditors in this cases. When the Debtors filed for protection against their creditors, they listed total assets at $15,346,607 andtotal debts at $19,869,931.

JOHNSON RUBBER: Court Defers DIP Facility Final Hearing to Jan. 29------------------------------------------------------------------The Hon. Randolph Baxter of the United States Bankruptcy Courtfor the Northern District of Ohio will convene a final hearingon Jan. 29, 2008, at 1:00 p.m., to consider approval of Johnson Rubber Company Inc. and its parent holding company, JR Holding Corp.'s request to access CIT Group/Business Credit Inc.'s DIP facility.

The Debtors tell the Court that CIT Group agreed to borrow up to $10,000,000 with 2% plus the greater of the prime rate or federal funds effective rate plus 1/2% and to mature on March 31, 2008.

The Debtors say that they grant the DIP lender senior liens in postpetition accounts receivable and inventory, junior liensin prepetition property subject to valid prepetiton lien and superpriority claim over all administrative claims of theDebtors.

As adequate protection, the Debtors say that they entitled theDIP lender to retain priority of prepetition liens and collateral, collect prepetion accounts receivable and proceeds of declared inventory and apply to prepetition indebtedness and receive cash payment of $100,000 per month.

Headquatered in Middlefield, Ohio, Johnson Rubber CompanyInc. -- http://www.johnsonrubber.com/-- designs, develops and manufactures polymer components. The company and itsparent, JR Holding Corp., filed for Chapter 11 protection onDecember 11, 2007 (Bankr. N.D. Ohio, Lead Case No. 07-19391). TheDebtors selected Donlin Recano as claims, noticing and ballotingagent. The United States Trustee for Region 9 appointed four creditors to serve on an Official Committee of Unsecured Creditors in this cases. When the Debtors filed for protection against their creditors, they listed total assets at $15,346,607 andtotal debts at $19,869,931.

As of the Dec. 17, 2007 distribution date, the transaction's aggregate certificate balance has decreased by less than 1.0% to $3.917 billion from $3.940 billion at securitization. The Certificates are collateralized by 269 loans, ranging in size from less than 1.0% to 6.1% of the pool, with the top ten loans representing 36.2% of the pool. The pool has not experienced any losses to date and currently there are no loans in special servicing. Forty-five loans, representing 14.0% of the pool, are on the master servicer's watchlist.

Moody's was provided with year-end 2006 operating results for 90.9% of the pool. Moody's weighted average loan to value ratio is 101.1%, essentially the same as at securitization, resulting in the affirmation of all classes.

The top three loans represent 16.1% of the pool. The largest loan is the Westfield Centro Portfolio Loan ($240.0 million -- 6.1%), which is secured by a 2.4 million square foot portfolio consisting of five retail properties located in five states. The centers range in size from 460,000 to 1.1 million square feet. The portfolio was 91.9% occupied as of September 2007, compared to 92.8% at securitization. Moody's LTV is 98.9%, the same as at securitization.

The second largest loan is the One & Two Prudential Plaza Loan ($205.0 million -- 5.2%), which is secured by two adjacent office buildings in Chicago, Illinois. The loan represents a 50.0% pari passu interest in a $410.0 million first mortgage loan. The buildings were 89.7% leased as of August 2007, compared to 84.8% at securitization. Major tenants include People Gas Light & Coke, Baker and McKenzie and McGraw Hill, Inc. Performance is in-line with securitization. Moody's LTV is 97.5%, the same as at securitization.

The third largest loan is the Bella Terra Retail Loan ($188 million -- 4.8%), which is secured by a recently renovated 664,000 square foot open-air community shopping center located in Huntington Beach, California. The center is anchored by Burlington Coat Factory, Bed Bath & Beyond and Barnes and Noble. The in-line stores were 96.0% occupied as of June 2007, compared to 84.0% at securitization. Moody's analysis reflected a stabilized occupancy level for the property, which has been achieved. However, financial performance has been impacted by higher than projected expenses. Moody's LTV is 108.2%, compared to 106.1% at securitization.

The negative rating outlook follows the announcement that an affiliate of Sun Capital Securities Group, LLC has commenced a tender offer to purchase all outstanding shares of Kellwood Company's common stock for $21 per share. The offer is not contingent on financing or due diligence. Sun Capital, which owns 9.9% of the Kellwood's common shares, has also stated that if an agreement is not reached in the near term it intends to nominate its own slate of directors for election to Kellwood's Board at the 2008 Annual Meeting of Stockholders. Kellwood's Board of Directors have stated they will review the offer and make a recommendation to shareholders in due course.

The company's ratings could be adversely impacted in the event that a successful tender offer or election of a new slate of directors resulted in a transaction that resulted in a significant increase in indebtedness, or if following a change of control there were to be a material change in the company's operating and financial policies. The ratings could also be negatively impacted were Kellwood to adopt a more aggressive financial policy in response to shareholder pressure.

Moody's has previously commented that the company's existing ratings were not impacted by the sale of the company's Smart Shirt manufacturing operations and related real estate assets as it was anticipated a material portion of the net cash proceeds would be used to reduce debt. In that connection the company's repayment of Smart Shirt's debt of approximately$33 million and the announced tender for $60 million of the company's senior notes due 2009 were consistent with these expectations.

These ratings were affirmed:

-- Corporate Family Rating at Ba3;

-- Probability of Default Rating at Ba3;

-- $140 million Debentures due July 15, 2009: B1 (LGD 5, 70%);

-- $130 million Debentures due Oct. 15, 2017: B1 (LGD 5, 70%).

Based in St Louis, Missouri, Kellwood Company is a marketer of apparel and consumer soft goods, specializing in branded as well as private label products, marketed across a number of channels of distribution. The company's brand portfolio includes "Sag Harbor", "Gerber", "Hanna Andersson" and "Vince". The company reported revenues of $1.5 billion in its most recent fiscal year, pro-forma for the recent divestiture of Smart Shirts.

LAKE AT LAS VEGAS: S&P Cuts Then Withdraws Ratings--------------------------------------------------Standard & Poor's Ratings Services lowered its corporate credit ratings on Lake at Las Vegas Joint Venture and LLV-1 LLC to 'D' from 'CC'. Concurrently, S&P lowered the rating on a $540 million senior secured credit facility to 'D' from 'CCC-' and left the '2' recovery rating unchanged. S&P then withdrew all ratings due to a lack of information following the acquisition of the equity interests in the borrowers' assets by an unrated private company.

The ratings acknowledge a fourth-quarter 2007 interest payment default by the borrowers and the subsequent sale of the borrowers' equity interests to The Atalon Group LLC for an undisclosed amount. The borrowers were limited liability companies formed to acquire the land and construct the infrastructure improvements at the Lake Las Vegas Resort, a 3,600-acre master-planned residential and resort community in Henderson, Nev. Atalon is a privately held operational turnaround firm based in Las Vegas. An Atalon executive served as chief restructuring officer to the borrowers prior to a technical default under the senior secured credit facility and during the forbearance period.

Standard & Poor's previously acknowledged that the borrowers' senior secured credit facility was highly vulnerable to nonpayment due to the borrowers' extremely constrained liquidity position. Creditors granted a temporary waiver of default related to the borrowers' failure to close on the sale of a 62-acre manmade island parcel by Sept. 30, 2007, as required under the terms governing the credit facility. However, ensuing negotiations with potential buyers were not successful, and the borrowers failed to make scheduled interest payments by Dec. 31, 2007. The equity interests in the borrowers' assets were then sold to Atalon on Jan. 2, 2008.

Principals of the borrowers have resigned, and Atalon now owns and manages the Lake Las Vegas project. S&P believes that Atalon is exploring options to maximize the recovery value for creditors. S&P's previous '2' recovery rating indicated S&P's expectation for substantial recovery (70%-90%) in the event of default, but it was based on cash flow projections provided by the original borrowers' principals.

LANDMARK FBO: Moody's Junks Rating on $120 Million 2nd Lien Loan----------------------------------------------------------------Moody's Investors Service assigned first time ratings of B1 to Landmark FBO, LLC's first lien bank debt (consisting of a $188 million term loan and a $30 million revolving credit facility), Caa2 to the company's second lien term loan of $120 million, and a B3 Corporate Family Rating and Probability of Default rating. The rating outlook is stable.

Landmark is acquiring certain aviation businesses from DAE Aviation Holdings, Inc. as well as additional businesses currently operating as Encore FBO. Landmark's activities include fixed base operations and select light maintenance & repair operations services to the general aviation segment. Landmark will be the third largest network of FBOs with 42 bases in North America and Western Europe.

The B3 Corporate Family Rating recognizes the considerable leverage deployed in the borrower's capital structure, the modest scale of Landmark's business operations, and sensitivity of its results to minor downside scenarios in volumes and margins given the level of fixed cost inherent in its operations. The rating further considers that Landmark's future results must exceed historical performance in order for significant amounts of free cash flow to be achieved. As well there is some concentration risk with overall results dependent on performance of certain FBOs whose initial lease terms expire within the first few years of the transaction. Partially offsetting the latter is management's experience in successfully renewing its leases and the diversification provided by the number of airports at which Landmark will have a presence as well as their dispersion across North America and select locations in Europe. The rating incorporates favorable growth prospects for jet fuel demand in the GA sector over time, limitations on the number of competitors at any one airport which effectively establish some barriers to entry, and expectations that the company will be modestly free cash flow generative in 2008. Sustaining margins in its dominant fuel services segment will be critical to Landmark's future performance, which will be exposed to macro-economic factors or changes in government regulations that could impact the level of corporate jet travel. The company will need to execute in a timely manner on its strategy of realizing cost synergies from the amalgamation of two separate ensembles of FBOs. Moody's also anticipates that Landmark's strategy may include acquiring additional FBO sites such that it is more likely that the borrower would remain extensively levered.

The stable outlook considers the likelihood that demand for jet aviation fuel will continue to increase, and combined with management's track record in maintaining margins on fuel sales, consistent although modest free cash flow could be expected. The geographic spread of its airport locations, diversified customer base as well as a sufficient liquidity profile provide further support to the stable outlook.

The ratings for the first lien credit facilities and second lien term loan are the product of an overall probability of default, to which Moody's assigns a PDR of B3, and a loss given default of LGD-3, 31% for the first lien facilities and LGD-5, 82% for the second lien term loan. The B1 rating of the first lien senior secured credit facilities reflect their priority position within Landmark's capital structure, the benefits of guarantees from all material subsidiaries and an all asset pledge, and a significant amount of junior liabilities behind their claims. The Caa2 rating assigned to the second lien term loan reflects their status behind the first lien obligations, the same set of up-streamed guarantees, and a modest amount of unsecured liabilities further below in the waterfall of claims.

Ratings assigned:

Landmark FBO, LLC

-- Corporate Family Rating, B3

-- Probability of Default, B3

-- $30 million first lien revolving credit facility, B1 (LGD- 3, 31%)

-- $188 million first lien term loan, B1 (LGD-3, 31%)

-- $120 million second lien term loan, Caa2 (LGD-5, 82%)

The acquisition of the DAE business units is valued at approximately $436 million with some $280 million of the proceeds intended to retire debt at DAE. The balance of funds provided by the term loans and equity contributions from the sponsors will be used to refinance existing Encore FBO debt as well as for transaction fees and expenses. The revolving credit facility is not expected to be drawn at the time of closing of the financing.

Landmark FBO, LLC will be managed from Houston, Texas and will operate 42 bases for general aviation services across North America and Western Europe. Principal offerings include refueling, light maintenance and repair of private jets, fuel logistics for the Department of Defense, replacement parts as well as airplane parking, cleaning and chartering on behalf of owners. Annual revenues are expected to be around $400 million (excluding certain un-restricted subsidiaries).

LAS VEGAS SANDS: Completes Initial Funding of Credit Facility-------------------------------------------------------------Las Vegas Sands Corp. has completed the initial funding of SGD$2 billion under its credit facility for the developmentof the Marina Bay Sands in Singapore.

The initial borrowing under the credit facility, for which the interest rate is based on the Singapore Dollar Swap Offer Rate for a maturity of thirty days, bears interest at approximately 3.6%.

"The credit facility, which is the largest private Singapore Dollar-denominated financing ever completed, will provide flexible and cost effective financing as we build South Asia's first Integrated Resort," Mr. Adelson continued. "We are quite gratified that the Singapore interest rate is significantly below the rates which we would have to incur in the U.S. or other international markets in today's market."

About Las Vegas Sands

Headquartered in Las Veags, Nevada Las Vegas Sands Corp. (NYSE:LVS) -- http://www.lasvegassands.com/-- owns and operates The Venetian Resort-Hotel-Casino and the Sands Expo and Convention Center in Las Vegas and The Venetian Macao Resort-Hotel and the Sands Macao in the People's Republic of China Special Administrative Region of Macao. The company is constructing three additional integrated resorts: The Palazzo Resort-Hotel-Casino in Las Vegas; Sands Bethworks(TM) in Bethlehem, Pennsylvania; and The Marina Bay Sands(TM) in Singapore.

LVS is also creating the Cotai Strip(TM), a master-planneddevelopment of resort-casino properties in Macao. Additionally, the companyis working with the Zhuhai Municipal People's Government of the PRC to master-plan the development of a leisure resort and convention complex on Hengqin Island in the PRC.

* * *

Las Vegas Sands Corp. still carries Standard & Poor's RatingsServices 'BB-' long term foreign and local issuer credit ratings, which were placed on April 17, 2007. Rating outlook is stable.

LB COMMERCIAL: Moody's Maintains Junk Ratings on Two Classes------------------------------------------------------------Moody's Investors Service upgraded these ratings of two classes and affirmed the ratings of 12 classes of LB Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 1998-C4:

As of the Dec. 17, 2007 distribution date, the transaction's aggregate certificate balance has decreased by approximately 27.0% to $1.5 billion from $2.0 billion at securitization. The Certificates are collateralized by 245 loans ranging in size from less than 1.0% to 13.6% of the pool, with the top 10 loans representing 46.7% of the pool. The pool consists of a shadow rated component, representing 33.9% of the pool, a conduit component, representing 30.8% of the pool and a credit tenant lease component, representing 3.0% of the pool. Eighty-six loans, representing 32.3% of the pool, have defeased and have been replaced with U.S. Government securities. There is one loan, representing 0.4% of the pool balance, in special servicing. Moody's has estimated a loss of approximately $3.1 million for the specially serviced loan. Eight loans have been liquidated from the pool resulting in realized aggregate losses of approximately $16.0 million. Sixty-six loans, representing 21.2% of the pool, are on the master servicer's watchlist.

Moody's was provided with year-end 2006 operating results for 95.7% of the performing loans excluding defeased assets and CTL loans. Moody's weighted average loan to value ratio for the conduit component is 81.8%, compared to 82.6% at Moody's last full review in November 2006 and compared to 92.0% at securitization. Moody's is upgrading Classes E and F due to increased subordination levels, defeasance and stable overall pool performance.

The largest shadow rated loan is the TRT Holdings Loan ($200.6 million - 13.6%), which is secured by five Omni Hotels located in New York, Chicago and Texas. The portfolio contains 1,858 rooms with the hotels ranging in size from 337 to 410 rooms. The portfolio's RevPAR for calendar year 2006 was $150, which represents an 11.0% increase since 2005. All of the five hotels reported increases in net operating income since last review ranging from 0.9% to 25.1%. The loan has amortized 19.5% since securitization and matures in Sept. 2008. Moody's current shadow rating is Baa1 compared to Ba1 at last review and compared Baa1 at securitization.

The second largest shadow rated loan is the Mills Loan ($128.2 million - 8.7%), which is secured by a 1.2 million square foot super regional mall located in Ontario, California. NOI increased 9.2% from calendar year 2005 to 2006 and increased 37.3% since securitization. The loan has amortized 11.6% since securitization and matures in December 2008. Moody's current shadow rating is A1, compared to A3 at last review and compared to Baa3 at securitization.

The third largest shadow rated loan is the Fresno Fashion Fair Mall Loan ($63.6 million - 4.3%), which is secured by an 881,000 square foot regional mall located in Fresno, California. The property's performance has improved significantly since securitization, largely due to its dominant market position. Net operating income has increased by approximately 18.1% from 2005 to 2006 and approximately 91.0% since securitization. As of June 2007, the mall was 98.6% occupied essentially the same as at securitization. The center is anchored by J.C. Penney, Macys and Gottschalks. The loan has amortized 7.8% since securitization and matures in August 2008. Moody's current shadow rating is Aaa compared to Aa2 at last review and compared to Baa3 at securitization.

The fourth largest shadow rated loan is the Inland Portfolio Loan ($54.6 million - 3.7%), which is secured by a portfolio of 12 retail properties located in Illinois, Minnesota, Indiana and Wisconsin. The portfolio totals 1.2 million square feet. As of June 2007, occupancy was 85.5% compared to 96.5% at last review and compared to 98.0% at securitization. The loan is interest only through the Anticipated Repayment Date of Oct. 1, 2008. Moody's current shadow rating is Baa3, compared to Baa1 at last review and compared to A3 at securitization.

The fifth largest shadow rated loan is the Bayside Loan ($54.3 million - 3.7%), which is secured by the Bayside Marketplace, a 231,000 square foot specialty retail center located in Miami, Florida. As of June 2007, occupancy was 85.1% compared to 86.9% at last review and compared to 96.0% at securitization. Overall performance has improved as NOI increased 5.8% from 2005 to 2006 and increased 19.7% since securitization. The loan has also amortized 13.7% since securitization and matures in November 2008. Moody's current shadow rating is A3, compared to Baa2 at last review and compared to Ba1 at securitization.

LEHMAN XS: Moody's Cuts Ratings on Five Tranches on Delinquency---------------------------------------------------------------Moody's Investors Service downgraded the ratings of five tranches from two transactions issued by Lehman XS Trust in 2007. One downgraded tranche remains on review for possible downgrade. The collateral backing these classes primarily consists of first lien, adjustable-rate negatively amortizing Alt-A mortgage loans.

The ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its analysis Moody's has also applied its published methodology updates to the non-delinquent portion of the transactions.

LEVITZ FURNITURE: Can Use GECC's Cash Collateral on Final Basis---------------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of New York approved, on a final basis, the stipulation between General Electrical Capital Corporation and PLVTZ Inc., granting the Debtor authority to use its prepetition secured lenders' cash collateral.

The Debtor is authorized to use Cash Collateral for the period from the Petition Date through the earlier of (a) the Court's entry of an order terminating the authority, or (b) the date which is three business days following notice by by GECC, as agent, or the Debenture Holder to the Debtor that an event of default has occurred and is continuing.

Cash Collateral may be used during the Specified Period solely up to the amounts -- subject to a 5% variance -- and substantially for the purposes identified in the cash collateral budget approved by the Agent.

A full-text copy of the Cash Collateral Budget is available for free at:

All objections to the stipulation, to the extent not withdrawn or resolved, are overruled.

As part of the settlement and release of claims of the Debtor's estate, the the Official Committee of Unsecured Creditors agrees, among other things, that as of the Petition Date, the value of the Agent and Lenders' interest in the Prepetition Collateral was $46,936,000, which amount exceeds the amount of the Senior Obligations.

Accordingly, the Creditors' Committee consents to the allowance of the Senior Obligations as fully secured claims, up to $46,936,000. Any payments made or to be made on account of the Senior Obligations have been or will be for the benefit of the Agent or Lenders on account of amounts in respect of which the Agent and Lenders were oversecured and do not diminish any property otherwise available for distribution to general unsecured creditors.

The Creditors' Committee will investigate and challenge the validity, priority and perfection of the Senior Obligations and the Senior Liens, that the Debtor and its estate have no offsets, defenses, claims, objections, challenges, causes of action, including without limitation claims, against the Agent, the Lenders, the Debenture Holder.

A full-text copy of the Final Order authorizing use of Cash Collateral is available for free at:

As reported in the Troubled Company Reporter on Nov. 15, 2007, Judge Gerber gave PLVTZ and its debtor-affiliates interim permission to use the cash collateral securing repayment of their obligations to General Electrical Capital Corporation.

About Levitz Furniture

Based in New York City, Levitz Furniture Inc., nka PVLTZ Inc. --http://www.levitz.com/-- is a specialty retailer of furniture, bedding and home furnishings in the United States. It has 76locations in major metropolitan areas, principally in theNortheast and on the West Coast of the United States.

Levitz Furniture Inc. and 11 affiliates filed for chapter 11 onSept. 5, 1997. In December 2000, the Court confirmed the Debtors'Plan and Levitz emerged from chapter 11 on February 2001. LevitzHome Furnishings Inc. was created as the new holding company as aresult of the emergence.

Levitz Home Furnishings and 12 affiliates filed for chapter 11protection on Oct. 11, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-45189). In their second filing, the Debtors disclosed about$245 million in total assets and $456 million in total debts.Nicholas M. Miller, Esq., and Richard H. Engman, Esq., at JonesDay represented the Debtors. Jeffrey L. Cohen, Esq., Jay R.Indyke, Esq., and Cathy Hershcopf, Esq., at Cooley Godward KronishLLP served as counsel to the Official Committee of UnsecuredCreditors. During this period, the Debtors closed around 35stores in the Northeast, California, Minnesota and Arizona.

PLVTZ Inc., a company created by Prentice Capital Management LP,and Great American Group purchased substantially all the assets ofLevitz Home Furnishings in December 2005. Initially, Prenticeowned all of the equity interests in PLVTZ. On July 6, 2007,PLVTZ was converted into a Delaware corporation, and HarbingerCapital Partners Special Situations Fund, LP, Harbinger CapitalPartners Master Fund I, Ltd., and their affiliates became minorityshareholders. Great American's stake in the acquisition was inrunning the going-out-of-business sales for some 27 Levitz units.

PLVTZ's balance sheet at Sept. 30. 2007, showed total assets of$177,883,000 and total liabilities of $152,476,000.

LEVITZ FURNITURE: Can Hire Rodman & Renshaw as Financial Advisor----------------------------------------------------------------The Hon. Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York approved, on a final basis, the employment of Rodman & Renshaw LLC, as PLVTZ Inc. dba Levitz Furniture Inc.'s financial advisors.

Judge Gerber permitted Rodman & Renshaw to receive a fee of $75,000, subject to review, for the services it provided from Nov. 8 to Dec. 3, 2007. The firm, however, is not allowed to receive a "going concern fee or a partial going concern fee."

Rodman & Renshaw is also entitled to reimbursement of out-of-pocket expenses incurred in connection with the employment, in an amount not to exceed $3,992.

Judge Gerber further ruled that all requests of Rodman & Renshaw for payment of indemnity should be made by means of an application and should be subject to review by the Court. The firm, however, will not be indemnified as a result of its own gross negligence, willful misconduct, among others.

Judge Gerber permitted the United States Trustee for Region 2 to retain its rights to object to the firm's interim and final fee applications on all grounds. On the other hand, he ruled that the Official Committee of Unsecured Creditors should be deemed to have waived its right to object to the application, to the extent Rodman & Renshaw files the application consistent with the terms of the Court order.

Judge Gerber further ruled that a $100,000 minimum fee, and reimbursement of expenses should be paid from the carve-out for the professionals.

Rodman & Renshaw is required to file a final fee application on or before Feb. 29, 2008.

About Levitz Furniture

Based in New York City, Levitz Furniture Inc., nka PVLTZ Inc. --http://www.levitz.com/-- is a specialty retailer of furniture, bedding and home furnishings in the United States. It has 76locations in major metropolitan areas, principally in theNortheast and on the West Coast of the United States.

Levitz Furniture Inc. and 11 affiliates filed for chapter 11 onSept. 5, 1997. In December 2000, the Court confirmed the Debtors'Plan and Levitz emerged from chapter 11 on February 2001. LevitzHome Furnishings Inc. was created as the new holding company as aresult of the emergence.

Levitz Home Furnishings and 12 affiliates filed for chapter 11protection on Oct. 11, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-45189). In their second filing, the Debtors disclosed about$245 million in total assets and $456 million in total debts.Nicholas M. Miller, Esq., and Richard H. Engman, Esq., at JonesDay represented the Debtors. Jeffrey L. Cohen, Esq., Jay R.Indyke, Esq., and Cathy Hershcopf, Esq., at Cooley Godward KronishLLP served as counsel to the Official Committee of UnsecuredCreditors. During this period, the Debtors closed around 35stores in the Northeast, California, Minnesota and Arizona.

PLVTZ Inc., a company created by Prentice Capital Management LP,and Great American Group purchased substantially all the assets ofLevitz Home Furnishings in December 2005. Initially, Prenticeowned all of the equity interests in PLVTZ. On July 6, 2007,PLVTZ was converted into a Delaware corporation, and HarbingerCapital Partners Special Situations Fund, LP, Harbinger CapitalPartners Master Fund I, Ltd., and their affiliates became minorityshareholders. Great American's stake in the acquisition was inrunning the going-out-of-business sales for some 27 Levitz units.

PLVTZ's balance sheet at Sept. 30. 2007, showed total assets of$177,883,000 and total liabilities of $152,476,000.

LIBERTY MEDIA: Discloses Semi-Annual Payment to Debenture Holders-----------------------------------------------------------------Liberty Media Corporation disclosed a semi-annual payment to the holders of its 3.5% Senior Exchangeable debentures due in2031. The amount of the payment is $17.50 per $1,000 oforiginal principal amount of the debentures.

This semi-annual payment will result in the further reduction of the adjusted principal amount of the debentures. Theprincipal amount of the debentures was reduced in the amount of $162.616 per debenture, resulting in an adjusted principal amount equal to $837.384 per debenture.

This adjustment resulted from an extraordinary distributionof cash that was paid to bondholders on Jan. 10, 2007, in accordance with the indenture governing the debentures. Thisextraordinary distribution arose from Freescale Semiconductor's merger with an entity controlled by a consortium of private equity firms in exchange for cash.

At that time, Liberty disclosed that, in accordance with theindenture, the adjusted principal amount of the debentures would be further reduced on each successive semi-annual interest payment date to the extent necessary to cause the semi-annual payment on that date to represent the payment by Liberty, in arrears, of an annualized yield of 3.5% of the adjusted principal amount of the debentures.

The adjustments will not affect the amount of the semi-annual payments received by holders of the debentures, which willcontinue to be a rate equal to 3.5% per annum of the original principal amount of the debentures.

The details of the amount of the payment made on the debentures, its allocation between payment of interest and repayment of principal and the revised adjusted principal amount resulting from the payment, per $1,000 of original principal amount of the debentures are:

The semi-annual interest payment and additional distribution were expected to be made on Jan. 15, 2008, to holders of record of the debentures on Jan. 1, 2008.

About Liberty Media

Headquartered in Englewood, Colorado, Liberty Media Corporation(NasdaqGS: LINTA) -- http://www.libertymedia.com/-- owns interests in a broad range of electronic retailing, media,communications and entertainment businesses. Those interests are attributed to two tracking stock groups: the Liberty Interactive group, which includes Liberty's interests in QVC, Provide Commerce, IAC/InterActiveCorp, and Expedia, and the Liberty Capital group, which includes Liberty's interests in Starz Entertainment, News Corporation, and Time Warner.

LUMINENT MORTGAGE: Receives NYSE Non-Compliance Notice------------------------------------------------------Luminent Mortgage Capital Inc. received a letter from the New York Stock Exchange, advising it that the company was not in compliance with a NYSE continued listing standard applicable to its common stock.

That standard requires that a listed common stock maintain an average closing stock price of over $1 per share of common stock for 30 consecutive trading days.

Under the NYSE rules, the companyhas ten business days, or until Jan. 24, 2008, to notify the NYSE of its intent to cure this deficiency. On Jan. 15, 2008, the companynotified the NYSE that it is the company's intent to cure this deficiency.

Under the NYSE rules, the companyhas six months from the date of the NYSE notice to cure the average price deficiency. If the companyhas not cured the deficiency by that date, itscommon stock would be subject to delisting by the NYSE.

About Luminent Mortgage

Headquartered in San Francisco, California, Luminent MortgageCapital Inc. -- http://www.luminentcapital.com/-- (NYSE: LUM) is a real estate investment trust, or REIT. Luminent is an asset management companythat invests in prime whole loans, U.S. agency and other highly-rated, single-family, adjustable-rate, hybrid adjustable-rate and fixed-rate mortgage-backed securities, which it acquires in the secondary market.

Luminent Mortgage's consolidated balance sheet at Sept. 30, 2007, showed $5.37 billion in total assets and $5.46 billion in total liabilities, resulting in a $90.5 million total stockholders' deficit.

LUMINENT MORTGAGE: Moody's Downgrades Ratings on Six Tranches-------------------------------------------------------------Moody's Investors Service downgraded the ratings of six tranches and has placed under review for possible downgrade the ratings of four tranches from two transactions issued by Luminent Mortgage Trust in 2007. The collateral backing these classes primarily consists of first lien, adjustable-rate negatively amortizing Alt-A mortgage loans.

The ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its analysis Moody's has also applied its published methodology updates to the non-delinquent portion of the transactions.

Complete rating actions are:

Luminent Mortgage Trust 2007-1

-- Cl. II-B-3 Currently Aa2, on review for possible downgrade,

-- Cl. II-B-4, Downgraded to A3, previously A1,

-- Cl. II-B-5, Downgraded to Baa2, previously A3,

-- Cl. II-B-6, Downgraded to Ba1, previously Baa2,

Luminent Mortgage Trust 2007-2

-- Cl. II-B-2 Currently Aa1, on review for possible downgrade,

-- Cl. II-B-3 Currently Aa2, on review for possible downgrade,

-- Cl. II-B-4 Currently Aa3, on review for possible downgrade,

-- Cl. II-B-5, Downgraded to Baa2, previously A2,

-- Cl. II-B-6, Downgraded to Ba1, previously Baa1,

-- Cl. II-B-7, Downgraded to Ba3, previously Baa2.

MAXJET AIRWAYS: Committee Wants to Hire Morris James as Co-Counsel------------------------------------------------------------------The Official Committee of Unsecured Creditors in MAXjet Airways Inc.'s Chapter 11 case asks permission from the U.S. Bankruptcy Court for the District of Delaware to employ Morris James LLP as co-counsel with Arent Fox nunc pro tunc to Jan. 7, 2008.

The Committee noted that Morris James is familiar with the facts of this Chapter 11 case, understands and knows the Debtor's business issues, and has experience practicing before this Court.

The Committee relates that it is necessary to employ Morris James to ensure that the interests of the Debtor's unsecured creditors are represented adequately in an efficient and effective manner. Morris James will:

a) provide legal advise and assistance to the Committee in its consultation with the Debtor, in relation to the Debtor's administration of its reorganization;

b) review and analyze all applications, motions, orders, statements of operations and schedules filed with the Court, advise the committee as to their propriety, and, after consultation with the Committee, take appropriate action;

d) represent the Committee at Court hearings, communicate with the Committee regarding the issues raised, well as the decisions of the Court;

e) perform all other legal services for the Committee necessary for this case.

Stephen M. Miller, a partner in Morris James, tells the Court that the firm will seek compensation from the Debtor's estate for its regular hourly rates of lawyers and paraprofessionals, reimbursements of expenses incurred in behalf of the Committee. Mr. Miller added that the professional rates are:

Mr. Miller assues the Court that the firm does not hold anyinterest adverse and is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code.

Headquartered in Dulles, Virginia, MAXjet Airways Inc. --http://www.maxjet.com/-- is an all-business class, long-haul airline company. It has introduced scheduled services withflights from London Stansted Airport to New York. As of December 2006, it leased five B767 aircraft. Its customers are both business and leisure travelers. At the airport, its product features check-in facilities located in primary terminals, security and a business class departure lounge and arrivals facility. Its flights features deep-recline seats (170 degree) spaced at a 60 inch pitch, portable entertainment systems, stowage space and business class catering.

The Debtor filed for chapter 11 protection on Dec. 24, 2007(Bankr. D. Del. Case No. 07-11912). The Debtor selected Pachulski Stang Ziehl & Jones LLP as its bankruptcy counsel. The Debtor listed assets between $10 million and $50 million and debts between $50 million to $100 million when it filed for bankruptcy.

MGM MIRAGE: Raises Tender Offer to 15 Million Shares----------------------------------------------------MGM Mirage and Dubai World will increase their offer to purchase shares of MGM Mirage common stock from 10 million to 15 million, and set the tender price at $80 per share from the price range of $75 to $80 per share. The offer price represents approximately a 20.4% premium over MGM Mirage's closing stock price of $66.47 on Jan. 15, 2008.

As reported in the Troubled company Reporter on Jan. 11, 2008,MGM Mirage and Dubai World planned in making a cash tenderoffer for up to 10 million shares of common stock of MGM Mirage at a price per share of not less than $75 and not greater than $80.

With respect to the shares of MGM Mirage common stock that are tendered and accepted for purchase pursuant to the offer, MGM Mirage will purchase up to 8.5 million of said shares and Dubai World will purchase up to 6.5 million of said shares.

Tracinda Corporation is the beneficial owner of 153,837,330 shares of MGM Mirage common stock and has informed MGM Mirage that it will not tender any of its shares.

Dubai World, through its affiliates Infinity World (Cayman) L.P. and Infinity World Investments LLC, is the beneficial owner of 19,548,838 shares of MGM Mirage common stock. It is anticipated that the bidder on behalf of Dubai World will be Infinity World (Cayman) L.P.

Under the procedures for the tender offer, MGM Mirage's stockholders will have the opportunity to tender some or all of their shares at a price of $80 per share. If more than 15 million shares are tendered and not withdrawn, then MGM Mirage and Infinity World will purchase shares on a pro rata basis, subject to the conditional tender offer provisions that will be described in the offer to purchase that will be distributed to stockholders.

Stockholders whose shares are purchased in the offer will be paid the $80 per share price net in cash, without interest, after the expiration of the offer period. The offer is not contingent upon any financing condition or any minimum number of shares being tendered.

The offer is subject, however, to a number of other customary terms and conditions to be specified in the offer to purchase that will be distributed to stockholders. No brokerage fees or commissions will be charged to holders who tender their shares.

About Dubai World

Dubai World is a major investment holding company with a portfolio of businesses that includes DP World, Jafza, Nakheel, Dubai Drydocks, Maritime City, Istithmar, Kerzner, One & Only, Atlantis, Barney's, Island Global Yachting, Limitless, Inchcape Shipping Services, Tejari, Technopark and Tamweel. The Dubai World Group has more than 50,000 employees in over 100 cities around the globe. The group also has real estate investments in the US, the UK and South Africa. In the last five years, Dubai World has developed 80,000 luxury residential villas and apartments and approximately three million square feet of retail space.

About MGM Mirage

Headquartered in Las Vegas, Nevada, MGM Mirage (NYSE: MGM) --http://www.mgmMirage.com/-- is a hotel and gaming company. It owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois.

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As reported in the Troubled company Reporter on Oct. 12, 2007,Standard & Poor's Ratings Services affirmed the 'BB' corporatecredit rating on MGM Mirage and removed them from CreditWatch,where they were placed with positive implications Aug. 22, 2007. The rating outlook is positive.

MGM MIRAGE: Launches Sale of CityCenter's Harmon Hotel------------------------------------------------------MGM Mirage released the last of CityCenter's exclusive residential offerings with the sales launch of The Harmon Hotel, Spa & Residences.

"The release of The Harmon for purchase marks a significant milestone as it represents the final opportunity for prospective residents to own a piece of CityCenter," Tony Dennis, executive vice president for CityCenter's Residential Division, said.

"We are confident that sales for The Harmon will exceed expectations, and with only 207 residences available, we believe the demand will be extraordinary. Through its remarkable architecture, elite amenities, unmatched service and forward-thinking environmental initiatives, CityCenter is quickly becoming recognized as one of the world's most desirable residential communities," Mr. Dennis continued.

Designed by Foster + Partners and operated by The Light Group, The Harmon's 47-story facade will provide residents with views of the boulevard when it opens in late 2009. With 400 hotel rooms and suites, and approximately 207 luxury condominiums. Luxury residences will range from nearly 1,000 to 3,700 square feet and be available as one- and two-bedroom flats and penthouses.

"The Harmon will be sophisticated and absolutely original," Andrew Sasson, founder and principal partner of The Light Group said. "It will define exclusive living on The Strip by offering a unique and highly stylish urban concept, supreme service and amenities, and the very best location for those seeking to shun the limelight in exchange for a secluded oasis."

Residents will have an access to all hotel amenities including: the creation of Michael Chow with his MR CHOW restaurant in Las Vegas; a hair salon by Frederic Fekkai; a private lobby lounge for residents; other dining offerings; retail offerings in Las Vegas; a luxurious spa; pool deck; valet parking and much more.

The Harmon, in line with Sasson's other enterprises, also will be committed to the core values of green design and responsible living.

"The Harmon will define a new era of sustainable luxury," said Mr. Sasson. "It was designed to be an amalgamation of every great lifestyle experience in the world; only better."

A design collaboration between MGM Mirage and eight architects, CityCenter will feature a 61-story, 4,000-room hotel/casino; two 400-room, non-gaming hotels; a 500,000-square-foot retail and entertainment district; and approximately 2,650 luxury residences.

Accepted as a member of The Leading Hotels of the World, The Harmon will be one of the luxurious, quality boutique hotels with approximately 207 elite condominiums and an array of amenities.

Interested buyers can make appointments to preview The Harmon Residences at CityCenter's Residential Sales Pavilion by calling (702) 590-5999 or (866) 708-7111, or visit -- http://www.citycenter.com/-- for more information.

About MGM Mirage

Headquartered in Las Vegas, Nevada, MGM Mirage (NYSE: MGM) --http://www.mgmMirage.com/-- is a hotel and gaming company. It owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois.

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As reported in the Troubled company Reporter on Oct. 12, 2007,Standard & Poor's Ratings Services affirmed the 'BB' corporatecredit rating on MGM Mirage and removed them from CreditWatch,where they were placed with positive implications Aug. 22, 2007. The rating outlook is positive.

MONEYGRAM INTL: $860 Mil. Losses Cues S&P to Cut Rating to BB-------------------------------------------------------------Standard & Poor's Ratings Services lowered its long-term counterparty credit rating on MoneyGram International to 'BB' from 'BBB'. The rating will remain on CreditWatch Negative, where it was placed on Dec. 13, 2007.

As the company moves to restructure its Payment Systems business and the associated float investment portfolio, these losses, which heretofore have been recorded as adjustments to shareholder's equity, will be realized. Given that the realized loss on a $1.3 billion portion of the securities portfolio that was sold in January 2008 was double the unrealized loss reflected as of Nov. 30, 2007, the resulting effect on earnings may be more than $1.5 billion,"a large amount considering that net income for the first nine months of 2007 was $96 million. Earnings will be affected in fourth-quarter 2007, as MoneyGram takes permanent impairments on its subprime mortgage, CDO, and other ABS investments. Earnings could also be affected in subsequent quarters if the realized losses on these securities exceed the previously booked unrealized losses.

MoneyGram also announced that it is in discussions with Thomas H. Lee Partners L.P., a private equity firm, regarding recapitalizing the company. The downgrade reflects the increased debt associated with this recapitalization, as this will increase leverage substantially above a level that is acceptable for an investment-grade rating. In addition, given the magnitude of the losses that S&P expects, it is unclear if the expected equity infusion would leave MoneyGram with an adequate level of tangible capital. Lastly, S&P are uncertain about what the expected 60%-65% initial ownership percentage by Thomas H. Lee Partners will mean for MoneyGram's strategy.

The current plan calls for approximately $750 million-$850 million of equity to be invested, and MoneyGram would raise an additional $550 million-$750 million of new debt facilities from third parties. The funds would be used to buy government, agency, and municipal securities to rebuild its float portfolio (which, per clearing bank and regulatory agreements, must exceed its payment obligations associated with official check and money orders). MoneyGram also plans to shrink its Payment Systems business substantially by refocusing on small and midsize bank relationships; however, S&P believes this may take up to one year or longer to fully implement. S&P expects the resulting Payment Systems business to operate at substantially reduced profitability, and this reduced earnings power is also a factor in S&P's downgrade.

Offsetting these concerns to a certain extent is the continuing strength of MoneyGram's money transfer business and adequate, short-term liquidity position. The company has $1.5 billion of cash available to meet the ongoing cash needs associated with the Payment Systems business and other operations.

The CreditWatch Negative listing reflects the potential for further negative ratings action as events unfold. For example, the recapitalization agreement may not be implemented as currently envisioned because, for instance, the closing conditions are not met. Additional factors that may trigger further downgrades include higher-than-expected losses, an inability to obtain further amendments and waivers to bank lending agreements and a primary clearing agreement after Jan. 31, 2007, and adverse regulatory actions by state regulatory bodies.

Any agreement with Thomas H. Lee Partners will allow MoneyGram's board to consider alternative offers, which may be consummated after the payment of a break-up fee. This includes ongoing discussions with Euronet Worldwide Inc. (BBB/Watch Pos/--), with whom MoneyGram recently signed a confidentiality agreement. The initial CreditWatch Negative listing was predicated on Euronet potentially acquiring MoneyGram. Although both entities are currently rated the same, the rating on a combined entity may differ.

The affirmations are the result of stable pool performance since Fitch's last rating action. As of the December 2007 distribution date, the pool's aggregate principal balance has decreased 12.3% to $818.5 million compared to $931.6 million at issuance. Eleven loans (15.8%) have defeased since issuance. There are currently no delinquent or specially serviced loans.

Five loans (42.1%) were shadow rated investment grade at issuance, one of which has paid in full. All shadow ratings remain investment grade.

1290 Avenue of the Americas (20%) is secured by a 43-story class A office building totaling 2 million square feet, located in midtown Manhattan, New York. The whole loan was divided into four pari passu notes and a subordinate B-note. The $130 million A-4 and the $35.0 million A-5 notes serve as collateral in the subject transaction. Occupancy as of September 2007 is 100% compared to 98.7% at issuance.

Oakbrook Center (9.4%) is secured by the fee interest in 942,039 square feet of owned retail space, 240,223 sf of office space in three buildings, and the ground leases for a 172-room Renaissance Hotel, Nordstrom, Neiman Marcus, and a Bloomingdale's Home Store in Oak Brook, Illinois. The whole loan was divided into three pari passu notes. Occupancy as of September 2007 is 99% compared to 94.3% at issuance.

52 Broadway (6.9%) is secured by a 399,935 sf single tenant office property in New York City. The property was 100% occupied as of September 2007, in line with issuance.

TruServ Portfolio I (3.1%) is secured by three industrial properties located in Springfield, Oregon, Fogelsville, Pennsylvania, and Kingman, Arizona. As of September 2007, the portfolio is 100% occupied, in line with issuance.

MORGAN STANLEY: S&P Keeps B+ Rating on $3 Mil. Class A-3 Notes--------------------------------------------------------------Standard & Poor's Ratings Services affirmed its 'B+' rating on the $3 million class A-3 secured fixed-rate notes from Morgan Stanley ACES SPC's series 2006-8 and removed it from CreditWatch, where it was placed with negative implications on May 4, 2007.

The rating action reflects the Jan. 15, 2008, affirmation of the ratings on Cablevision Systems Corp.'s senior unsecured debt and their removal from CreditWatch negative.

Morgan Stanley ACES SPC's $46 million secured fixed-rate notes series 2006-8 is a credit-linked note transaction. The rating on each class of notes is based on the lowest of:

(i) the ratings on the respective reference obligations for each class (with respect to class A-3, the senior notes issued by Cablevision Systems Corp. {'B+'});

(ii) the rating on the guarantor of the counterparty to the credit default swap, the interest rate swap, and the contingent forward agreement (in each instance, Morgan Stanley {'AA-'}); and

(iii) the rating on the underlying securities, BA Master Credit Card Trust II's class A certificates from series 2001-B due 2013 ('AAA').

MTI TECHNOLOGY: Thomas Raimondi Resigns as Chairman of the Board----------------------------------------------------------------MTI Technology Corp. disclosed in a regulatory filing with the U.S. Securities and Exchange Commission that effective as of Dec. 31, 2007, Thomas P. Raimondi, Jr. resigned as chairman of the Board of Directors and each of William Atkins, Lawrence P. Begley, Franz L. Cristiani, Ronald E. Heinz, Jr. and Kent D. Smith resigned as members of the Board of Directors.

The company added that Messrs. Raimondi, Atkins, Begley, Cristiani, Heinz and Smith did not resign as a result of any disagreement with the company on any matter relating to the company's operations, policies or practices.

Mr. Raimondi will continue, however, to serve as the company's chief executive officer and president.

Headquartered in Tustin, California, M.T.I. Technology Corp. --http://www.mti.com/-- provides professional services and data storage for mid- to large-sized organizations. In addition, thecompany owns all of the issued and outstanding share capital ofthree European subsidiaries: MTI Technology GmbH in Germany, MTITechnology Limited in Scotland and MTI France S.A.S. in France.

The company filed for Chapter 11 protection on Oct. 15, 2007(Bankr. C.D. Calif. Case No. 07-13347). Scott C. Clarkson, Esq.,at Clarkson, Gore & Marsella, A.P.L., represents the Debtor.Omni Management Group LLC serves as the Debtor's claim, noticingand balloting agent. The U.S. Trustee for Region 16 appointednine creditors to serve on an Official Committee of UnsecuredCreditors in the Debtor's case. As of July 7, 2007, the Debtorhad total assets of $64,002,000 and total debts of $58,840,000.

NATIONAL FARM: Files Schedules of Assets and Liabilities--------------------------------------------------------National Farm Financial Corp. filed with the U.S. BankruptcyCourt for the Northern District of California its schedules of assets and liabilities, disclosing:

National Farm Financial Corporation is a California based corporation . The company filed for Chapter 11 protection on Dec. 5, 2007 (Bank. N.D. Ca. Case No. 07-31580). Brian Y. Lee, Esq. and Justin E. Rawlins, Esq., at Law Offices of Winston and Strawn represents the Debtor in its restructuring efforts.

NATIONAL FARM: Files List of Two Largest Unsecured Creditors------------------------------------------------------------National Farm Financial Corporation submitted to the U.S. Bankruptcy Court for the Northern District of California a list of its two largest unsecured creditors, disclosing:

National Farm Financial Corporation is a California based corporation . The company filed for Chapter 11 protection on Dec. 5, 2007 (Bank. N.D. Ca. Case No. 07-31580). Brian Y. Lee, Esq. and Justin E. Rawlins, Esq., at Law Offices of Winston and Strawn represents the Debtor in its restructuring efforts.

NEPTUNE CDO: Weak Credit Quality Cues Moody's to Lower Ratings--------------------------------------------------------------Moody's Investors Service downgraded ratings of six classes of notes issued by Neptune CDO IV, Ltd., and left on review for possible further downgrade ratings of two of these classes of notes. The notes affected by this rating action are:

The rating actions reflect deterioration in the credit quality of the underlying portfolio, as well as the occurrence, as reported by the Trustee on Jan. 4, 2008, of an event of default caused by a failure of the Class A Overcollateralization Ratio to be greater than or equal to the required amount pursuant Section 5.1(j) of the Indenture dated March 29, 2007.

Neptune CDO IV, Ltd. is a collateralized debt obligation backed primarily by a portfolio of RMBS securities and CDO securities.

Recent ratings downgrades on the underlying portfolio caused ratings-based haircuts to affect the calculation of overcollateralization. Thus, the Class A Overcollateralization Ratio failed to meet the required level.

As provided in Article V of the Indenture during the occurrence and continuance of an Event of Default, holders of Notes may be entitled to direct the Trustee to take particular actions with respect to the Collateral Debt Securities and the Notes.

The rating downgrades taken reflect the increased expected loss associated with each tranche. Losses are attributed to diminished credit quality on the underlying portfolio. The severity of losses of certain tranches may be different, however, depending on the timing and choice of remedy to be pursued by certain Noteholders. Because of this uncertainty, the ratings assigned to the Class X Notes and the Class A-2 Notes remain on review for possible further action.

NEW CENTURY: Court Amends XRoads Appointment Order--------------------------------------------------The U.S. Bankruptcy Court for the District of Delaware has amended the Appointment Order with respect to XRoads Case Management Services LLC, to include the representation of New Century Warehouse Corporation, nunc pro tunc to Aug. 3, 2007. All other terms of the XRoads Appointment order will remain in effect.

As reported in the Troubled Company Reporter on Apr. 20, 2007,New Century Financial Corporation and its debtor-affiliatesobtained authority from the U.S. Bankruptcy Court for the Districtof Delaware to employ XRoads Case Management Services LLC as theirclaims and noticing agent.

Founded in 1995, Irvine, Calif.-based New Century FinancialCorporation (NYSE: NEW) -- http://www.ncen.com/-- is a real estate investment trust, providing mortgage products to borrowersnationwide through its operating subsidiaries, New CenturyMortgage Corporation and Home123 Corporation. The company offersa broad range of mortgage products designed to meet the needs ofall borrowers.

NEW CENTURY: Jamie Lisac Appointed as New CFO---------------------------------------------In a regulatory filing with the Securities and Exchange Commission, New Century Financial Corporation disclosed that on Dec. 19, 2007, Michael Tinsley has resigned as chief financial officer of NCFC, effective as of Dec. 28, 2007.

NCFC's Board of Directors appointed Jamie Lisac as NCFC's chief financial officer on Dec. 19, 2007. Mr. Lisac's appointment, effective as of Dec. 28, 2007, provides that he will not receive any compensation directly from NCFC, and will not participate in its employee benefit plans. Mr. Lisac is independently compensated, pursuant to arrangements between AP Services LLC and its affiliate, AlixPartners LLP, a financial advisory and consulting firm specializing in corporate restructuring.

Holly Etlin, president, chief executive officer and chief restructuring officer of NCFC, discloses that pursuant to an agreement between the Debtors and AP Services, the Debtors will compensate AP Services $565 per hour for Mr. Lisac's services.

Ms. Etlin informs that Mr. Lisac is a director of AlixPartners since April 2006, and will remain a director of AlixPartners while serving as the NCFC's chief financial officer.

Founded in 1995, Irvine, Calif.-based New Century FinancialCorporation (NYSE: NEW) -- http://www.ncen.com/-- is a real estate investment trust, providing mortgage products to borrowersnationwide through its operating subsidiaries, New CenturyMortgage Corporation and Home123 Corporation. The company offersa broad range of mortgage products designed to meet the needs ofall borrowers.

NEW CENTURY: Wants Bid Procedures for Sale of Mortgage Loans OK'd----------------------------------------------------------------- New Century Financial Corporation and its debtor-affiliates ask the Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware to approve bidding procedures and bid protections to GRP Loan LLC, pursuant to the terms and conditions of an asset purchase agreement dated Dec. 19, 2007, in connection with the proposed sale of certain assets.

Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, tells the Court that the Debtors seek to sell 46 mortgage loans that have not been financed through repurchase agreements, and several of those are secured by a second position mortgage.

Specifically, 15 Mortgage Loans are secured by property within the State of Ohio, and subject to a stipulated preliminary injunction that prohibits their sale, Mr. Samis relates. Through negotiations with the Ohio Attorney General and the Ohio Department of Commerce, the Debtors have been permitted to sell the Ohio Loans.

According to Mr. Samis, the Debtors had contacted Ellington Capital Management, GRP Financial Services Corp., Midwest First Financial, Eastern Savings Bank, UBS, Goldman Sachs, and Bayview Financial, among others, as likely bidders for the Mortgage Loans. GRP, Midwest, and Bayview were the only parties to submit bids, and GRP's bid on behalf of the stalking horse bidder was the highest for the entire pool of the Mortgage Loans.

On Dec. 19, 2007, the Debtors entered into the Asset Purchase Agreement with GRP, fixing a purchase price of $1,800,000 for the Mortgage Loans. The terms and conditions of the APA include:

-- the Stalking Horse Bidder's offer will be subject to potential auction and overbid by competing bidders submitting higher offers;

-- the purchase agreement states a purchase price determined by multiplying the aggregate unpaid principal balance of the Mortgage Loans against a bid price based on the decline in value of the collateral;

-- in the event that the Stalking Horse Bidder is the purchaser of the Mortgage Loans, the transaction will close within two business days after the sale; and

-- in the event that a third-party bidder is the successful bidder, the Stalking Horse Bidder is entitled a $40,000 break-up fee and a $16,000 reimbursement fee.

The Debtors propose to set Jan. 18, 2008, 12:00 p.m. prevailing Eastern time, as the deadline to submit competing bids for the Mortgage Loans. The bidder must, among other things, offer a purchase price that exceeds GRP's offer by not less than $100,000. The bidders, except for GRP, are not entitled to seek a break-up fee or expense reimbursements.

The Auction will start on Jan. 22, 2008, at a time selected by the Debtors. The Auction will be conducted by telephone conference, or as determined by the Debtors with notice to the qualifying bidders. Bids will commence at the highest or best bid submitted prior to the Auction, and qualified bidders may then submit successive bids in increments of at least $50,000.

The Debtors ask the Court to schedule a hearing on Jan. 23, 2008, to consider the sale of the Mortgage Loans to GRP or to the prevailing bidder at the Auction.

The Debtors submit that a prompt sale of the Mortgage Loans present the best opportunity to maximize the value of the Loans for the estates. The Debtors believe that, absent a prompt sale, the value of the Loans will substantially decline.

Founded in 1995, Irvine, Calif.-based New Century FinancialCorporation (NYSE: NEW) -- http://www.ncen.com/-- is a real estate investment trust, providing mortgage products to borrowersnationwide through its operating subsidiaries, New CenturyMortgage Corporation and Home123 Corporation. The company offersa broad range of mortgage products designed to meet the needs ofall borrowers.

NEWPAGE CORP: Closes Plants & Cuts Jobs as Restructuring Continues------------------------------------------------------------------NewPage Corporation disclosed key steps being taken to integrate NewPage and the former Stora Enso North America facilities and services.

"NewPage is combining its business with SENA with the vision of becoming the best printing paper company in North America," Mark A. Suwyn, chairman of the board and chief executive officer of NewPage, said. "These restructuring decisions will create the platform essential to become one company, remain competitive in the marketplace, serve our customers more efficiently and reach $265 million of synergies we have committed to achieve. Despite the permanent closures being announced, we are merging the operations in a manner that will actually increase our 2008 North American production by 3-8% compared to the combined production in 2007."

"At NewPage, we remain committed to our customers and we will continue to offer a broad portfolio of printing papers such as coated freesheet, lightweight coated groundwood, supercalendered paper and specialty products to meet a wide variety of needs," Rick Willett, president and chief operating officer, said. "We believe our customers will benefit from our closing slower, lower volume, less strategic machines and moving affected grades to machines that can manufacture them most efficiently, yielding a higher quality, more consistent product. Closing one of our converting facilities and transitioning sheeting operations will result in better geographical distribution, more capacity for sheets, faster turnaround and delivery times for custom sizes, and a wider range of sheet sizes."

The specific restructuring actions are:

* Permanently close the No. 11 paper machine in Rumford, Maine, which produces coated freesheet and groundwood papers for magazines and catalogs, by the end of February 2008. Approximately 60 employees will be affected by the shutdown.

* Permanently close the pulp mill and two paper machines, Nos. 43 and 44, in Niagara, Wisconsin, by the end of April 2008. The Niagara machines produce 230,000 tons of lightweight coated groundwood papers used in magazines and catalogs. Approximately 319 employees will be affected by the shutdown.

* Permanently close the No. 95 paper machine in Kimberly, Wisconsin, by the end of May 2008. The Kimberly mill produces coated freesheet papers for publication printing, and specialty papers for pressure- sensitive or glue-applied labels. Approximately 125 employees will be affected.

* Permanently close the Chillicothe, Ohio, converting facility by the end of November 2008 after some of the converting machines and volume are transferred to existing facilities in Luke, Maryland, and Wisconsin Rapids, Wisconsin. Approximately 160 employees will be affected.

Products produced on the closed machines will be transitioned to more efficient paper machines within the company's integrated mill system. "In addition to the changes to these operations and their employees, we are also informing personnel in all areas of the company such as sales, finance and other support functions of the longer term plans for their departments," Mr. Suwyn added. "NewPage is taking appropriate actions to assist the affected employees with new opportunities or benefits packages."

"These actions come from an extensive integration plan developed by a group of nearly 50 people from both companies and represent all the significant actions we expect to take to combine the two operations. We do not anticipate any further steps related to the integration," Mr. Willett said. "Right now the market is strong and we do not anticipate taking any market-related downtime which would be separate from these actions."

About NewPage

Headquartered in Miamisburg, Ohio, NewPage Corporation --http://www.newpagecorp.com/-- a wholly owned subsidiary of NewPage Holding Corporation -- is a U.S. producer of coated papersin North America. The company produces coated papers in sheetsand rolls with many finishes and weights to offer designflexibility for a wide array of end uses. With 4,300 employees,NewPage operates integrated pulp and paper manufacturing millslocated in Escanaba, Michigan; Luke, Maryland; Rumford, Maine; andWickliffe, Kentucky; and a converting and distribution center inChillicothe, Ohio. The mills have a combined annual capacity ofapproximately 2.2 million tons of coated paper.

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As reported in the Troubled Company Reporter on Dec. 11, 2007,Moody's Investors Service assigned a Ba2 rating to NewPageCorporation's new $1.6 billion senior secured term loan and a B2rating to the company's new $456 million second lien notes. Atthe same time, Moody's confirmed NewPage's B1 corporate familyrating, the B2 rating on the company's existing second lien notes,the B3 rating on the company's existing senior subordinated notes,as well as the company's speculative grade liquidity rating ofSGL-2. The ratings outlook is negative.

Standard & Poor's Ratings Services places its 'BB-' rating to theproposed $1.6 billion term loan B of NewPage Corp. (B/Stable/--),based on preliminary terms and conditions. At the same time, S&Passigned its 'B-' senior secured debt rating and '5' recoveryrating to NewPage's proposed second-lien $456 million add-on fixedrate notes, based on preliminary terms and conditions.

Standard & Poor's also lowered its ratings on the $225 millionsenior secured second-lien floating-rate notes and $350 millionsenior secured second-lien fixed-rate notes of NewPage Corp. Theratings on both issues were lowered to 'B-' from 'B' and removedfrom CreditWatch, where they were placed with negativeimplications on Sept. 24, 2007.

OCWEN FINANCIAL: Gets $7/Share in Cash Proposal from Investors--------------------------------------------------------------Ocwen Financial Corporation's board of directors has received a proposal from a group of investors led by William C. Erbey, chairman and chief executive officer of the company, Oaktree Capital Management L.P. and Angelo, Gordon & Co. L.P. to acquire all of the outstanding shares of the company for $7 per share in cash.

The board of directors of the company has formed a special committee of independent directors to consider the proposal. The committee has retained Evercore Group, as its independent financial advisors, and Shearman & Sterling LLP, as its legal counsel, to assist it in its work.

The board of directors cautions the company's stockholders and others considering trading in its securities that no decisions have been made by the board with respect to the company's response to the proposal.

There can be no assurance that any definitive offer will be made, that any agreement will be executed or that any transaction will be approved or consummated.

About Ocwen Financial Corporation

Based in West Palm Beach, Florida, Ocwen Financial Corporation (NYSE:OCN) -http://www.ocwen.com/-- is a provider of servicing and origination processing solutions to the loan industry. The company has three segments: Residential Servicing, Ocwen Recovery Group and Residential Origination Services. In addition to these business segments, the company reports other items of revenue and expense in its Corporate Items and Other segment. The company services residential mortgage loans, the majority of which are subprime mortgages. Ocwen Recovery Group primarily conducts collections for owners of delinquent and charged-off receivables and for a portfolio of unsecured credit card receivables that OCN acquired during the period 1998 through 2000. Residential Origination Services segment consists of three components: fee-based loan processing businesses, trading and investing activities and subprime loan originations.

Fitch's rating action follows a proposal by an investor group, led by the company's current CEO, William Erbey, to acquire all the outstanding shares of OCN common stock. Although the investor group is prepared to move quickly, a special committee of independent directors will consider the non-binding proposal. The proposed transaction will be financed through a combination of cash and approximately $150 million financing to repurchase OCN outstanding debt.

Assuming no material changes to the investor proposal, a new, private OCN entity emerging at the current rating level is probable. In addition, Mr. Erbey will remain chairman and CEO, and senior management is expected to remain largely intact. Fitch believes that a negative rating action, although possible, is less likely, as the investor group indicated that the proposed transaction will likely result in less debt for the company. However, Fitch believes that lower debt levels alone do not support a ratings upgrade. Positive rating momentum would be influenced by OCN demonstrating consistent and reliable earnings and cash flow without added leverage. Conversely, continued legislative and regulatory scrutiny of subprime mortgage servicing and a weaker corporate governance structure are negative rating considerations.

The affirmations, affecting approximately $34.6 million of the outstanding certificates, reflect a stable relationship between credit enhancement and expected losses.

As of the November 2007 distribution date, Fitch expects losses on the remaining pool balance of 40% for this transaction. When included with losses already incurred, total cumulative losses as a percentage of the initial pool balance is expected to be approximately 39%.

The downgrades of the two classes from series 2004-1 reflect deterioration in overcollateralization (O/C) due to excessive realized losses. During the past six remittance periods, losses have exceeded excess interest by an average of $181,899. Losses from delinquencies are projected to further reduce credit support. As of the Dec. 25, 2007, distribution date, total delinquencies for this transaction were 24.82% of the current pool balance, while severe delinquencies (90-plus days, foreclosures, and REOs) were 14.40%. Cumulative realized losses were 0.96% of the original pool balance.

The downgrades of the eight classes from series 2005-4 reflect a steady increase in the amount of loans in the severe delinquency pipeline in combination with a deterioration of credit support due to excessive realized losses. As of the Dec. 25, 2007, distribution date, the failure of excess interest to cover monthly losses reduced O/C to $3.975 million, 17% below its target. Over the last six remittance periods, the balance of loans that are severely delinquent has increased $52.616 million to $99.896 million, which is an increase of 111%. Based on the delinquency pipeline, losses are projected to further reduce credit enhancement levels. Total delinquencies for this transaction were 39.96% of the current pool balance, while severe delinquencies were 23.74%. Cumulative realized losses were 0.90% of the original pool balance.

The affirmations reflect current and projected credit support percentages that are sufficient to maintain the current ratings. As of the December 2007 remittance report, credit support for these transactions was, on average, 29.72% of the current pool balances. In comparison, current credit enhancement was, on average, 2.54x of the original levels. As of December 2007, total delinquencies for these transactions were 24.82% (series 2004-1) and 39.96% (series 2005-4) of the current pool balances, with severe delinquencies of 14.40% (series 2004-1) and 23.74% (series 2005-4) of the current pool balances. Cumulative realized losses were 0.96% (series 2004-1) and 0.90% (series 2005-4) of the original pool balances.

A combination of subordination, excess interest, and O/C provide credit enhancement for these transactions. The collateral supporting these series consists of subprime pools of fixed- and adjustable-rate mortgage loans secured by first liens on one- to four-family residential properties.

Proceeds from the term loan along with existing cash on hand will be used to repay $104 million of outstanding McLeodUSA debt and a $15 million tender premium for that debt as well as related fees and expenses. Pro forma operating lease-adjusted debt is about $1.0 billion. S&P expects to withdraw the ratings on McLeodUSA Inc. (B-/Negative/--) when the transaction closes.

The rating affirmation reflects the fact that the transaction is leverage neutral. Pro forma debt to EBITDA is about 3.7x on an operating lease adjusted basis and including about $30 million of synergies from the acquisition of McLeodUSA, which S&P believe are achievable given that they represent only 2% of the pro forma revenue.

The ratings on PAETEC continue to reflect a vulnerable business risk profile stemming from significant competition from larger, better-capitalized regional Bell operating companies and other competitive local exchange carriers (CLECs); the lack of any sustainable competitive advantages; integration risks from recent acquisitions; and low barriers to entry. Tempering factors include healthy discretionary cash flow, long average contract durations and low churn, and market diversity.

"We remain concerned that PAETEC's primary competitors, Verizon Communications Inc. and AT&T Inc., could step up competitive pressures with more aggressive pricing over the next few years," said Standard & Poor's credit analyst Allyn Arden. "We also expect the cable operators to become more aggressive in targeting this market in the intermediate term as their own residential business matures."

PAETEC is not well positioned to combat competitive pressures from better-capitalized telecommunication providers on a prolonged basis. Nevertheless, PAETEC benefits from a few positive business trends that should contribute to moderate growth over the longer term, including its low market penetration of addressable lines.

The company reported $7.5 million net loss for its third quarter ended Dec. 1, 2007, compared to $2.8 million net income for the same period in the previous year.

Items contributing to the net loss include, but are not limited to:

-- cost of goods sold increased approximately $44.6 million as a result of the acquisition of Zartic of approximately $35.3 million, increased sales volume and a change in mix of approximately $6.2 million, increased prices paid for raw materials of approximately $6.2 million; and increased product costs related to product outsourcing as a result of the destruction of the Hamilton, Alabama facility of approximately $1 million; partially offset by decreased sales to two national accounts restaurant chains of approximately $2.8 million, and other items.

-- selling, general, and administrative expenses increased approximately $13.8 million as a result of the volume increase due to the acquisition of Zartic of approximately $11 million, increased sales volume and a change in mix of approximately $2.4 million, and management consulting expenses of approximately $0.7 million, increased severance expenses, as a result of the Acquisition of Zartic of approximately $0.6 million, and increased demonstration expenses in the company's warehouse club division of $0.4 million; partially offset by other items.

-- interest expense and other income, net increased approximately $5.5 million as a result of a change in fair value of interest rate swaps, increased average borrowing on the company's term loan due to debt incurred in conjunction with the company's acquisitions of Zartic and Clovervale, and an increase in average borrowings under the company's revolving credit facility.

-- depreciation and amortization expense increased approximately $1.9 million due to the additional intangible assets and property, plant, and equipment being amortized and depreciated as a result of the company's acquisition of Zartic.

Factors contributing to the net loss were partially offset by:

-- net revenues increased approximately $50 million as a result of the acquisition of Zartic of approximately $45.3 million, and increased sales volume and mix of approximately $7.5 million in most of the company's end- market segments; and net price increases to customers of approximately $0.5 million; partially offset by decreased sales to two national accounts restaurant chains of approximately $3.3 million.

-- income tax expense decreased approximately $5.6 million as a result of a pre-tax loss during third quarter fiscal 2008 compared to pre-tax income during third quarter fiscal 2007.

The companyreported a net loss of $20 million during fiscal 2008 compared with net income of $3.6 million during fiscal 2007.

The companyhad capital expenditures totaling $6.5 million for fiscal 2008 and $6.2 million for fiscal 2007.

At Dec. 1, 2007, the company's balance sheet showed total assets of $596.43 million, total liabilities of $466.65 million and total shareholders' equity of $129.78 million.

As reported in the Troubled Company Reporter on Oct. 15, 2007,Standard & Poor's Rating Services affirmed its 'B' corporatecredit rating and other ratings on Pierre Foods Inc. The ratings were removed from CreditWatch, where they were placed with negative implications on Sept. 25, 2007. The outlook is negative.

The downgrade reflects the continuation of weaker-than-expected operating profitability and cash flow generation during fiscal year 2007 and the first quarter of 2008, which resulted in additional deterioration of Portola's weak liquidity position. Liquidity could deteriorate further during upcoming quarters because of expected cash outlays for debt service and capital expenditures coupled with challenging business conditions, including weak market demand for domestic fresh milk and elevated plastic resin costs related to higher crude oil and natural gas prices.

"We could lower the ratings again if Portola is unable to preserve sufficient availability under its secured revolving credit facility and begin to substantially improve operating results," said Standard & Poor's credit analyst Henry Fukuchi.

PRESIDENT CASINOS: Earns $223,000 in Third Quarter Ended Nov. 30----------------------------------------------------------------President Casinos Inc. reported net income of $223,000 for the third quarter ended Nov. 30, 2007, compared with net income of $10.1 million in the same period ended Nov. 30, 2006.

As of Nov. 30, 2007, the company had sold its St. Louis and Biloxi operations. As such, revenues for the three-month period ended Nov. 30, 2006, are classified in discontinued operations. There were no operating revenues for the three-month period endedNov. 30, 2007.

The company had an operating loss of $218,000 during the three-month period ended Nov. 30, 2007, compared to $491,000 during the three-month period ended Nov. 30, 2006.

The company incurred reorganization expense of $4,000 during the three-month period ended Nov. 30, 2007, compared to income of $10.0 million during the three-month period ended Nov. 30, 2006. The decrease in reorganization income is primarily the result of the recognition of a $10.0 million reduction of the Senior Exchange Notes and the Secured Notes during the three-month period ended Nov. 30, 2006, as a result of the Settlement Agreement the company and President Riverboat Casino-Missouri Inc. entered into wiht Pinnacle Entertainment Inc., the Official Committee of Equity Holders and Mr. Terrence L. Wirginis, dated as of Oct. 10, 2006.

Income from discontinued operations were $387,000 for the three months ended Nov. 30, 2007, and $165,000 for the three months ended Nov. 30, 2006.

At Nov. 30, 2007, the company's consolidated balance sheet showed$5.2 million in total assets, $3.1 million in total liabilities, and $2.1 million in total stockholders' equity.

As reported in the Troubled Company Reporter on June 21, 2007,Deloitte & Touche LLP, in St. Louis, Missouri, expressedsubstantial doubt about President Casinos Inc.'s ability tocontinue as a going concern after auditing the company'sconsolidated financial statements for the years ended Feb. 28,2007, and 2006. The auditing firm pointed to the company'srecurring losses from continuing operations and absence of anyongoing revenue producing activities.

The company's business activities currently consist ofmanaging its existing litigation matters, discharging itsliabilities and administering the bankruptcy reorganization plansof its former Biloxi and St. Louis operations.

PUBLICARD INC: Court Confirms Amended Plan of Reorganization------------------------------------------------------------The United States Bankruptcy Court for the Southern Districtof New York confirmed the Amended Chapter 11 Plan of Reorganization filed PubliCARD Inc.

Under the Plan, the 500 Group, LLC, an entity currently controlled by PubliCARD's Chief Executive Officer, Joseph E. Sarachek, will contribute $500,000 to the Reorganized Debtor. In exchange for the contribution, The 500 Group, LLC will receive 90% of the Reorganized Debtor's common stock. Holders of PubliCARD's existing common and preferred stock will each receive 5% of the Reorganized Debtor's common stock.

Proceeds of The 500 Group, LLC's contribution will be used to:

-- fund the Reorganized Debtor which will change its name from PubliCARD to Chazak Value Corp., a Delaware Corporation, to pay allowed administrative expenses;

-- pay allowed priority claims; and

-- provide $60,000 to pay allowed general unsecured claims.

Holders of general unsecured claims will receive an approximate 17% recovery.

On the effective date of the Plan, a new Board of Directors will be installed for the reorganized Debtor consisting of:

Headquartered in New York, PubliCARD Inc. fka Publicker Inc. is a smart card technology company that provides products and solutions to facilitate secure access and transactions. PubliCARD also licenses smart card reader technology and the integrated circuit technology within readers. filed a chapter 11 petition on May 17, 2007 (Bankr. S.D.N.Y. Case No. 07-11517). David C. McGrail, Esq., at the Law Offices of David C. McGrail in New York represents the Debtor in its restructuring efforts. As of Nov. 30, 2007, the company's balance sheet showed total assets of $26,206, total liabilities of $505,926.

QLT INC: Board Gives "Go" Signal to Sell Unit and Cut Jobs----------------------------------------------------------QLT Inc. said Wednesday that following a months-long business and portfolio review, its Board of Directors has decided to implement several new initiatives designed to enhance shareholder value. These initiatives include:

-- The sale of QLT USA, Inc. whose primary assets include the Eligard(R) product line for prostate cancer, Aczone(TM), a dermatology product for the treatment of acne vulgaris, and the Atrigel(R) drug delivery system, either in a single transaction or series of transactions;

-- The sale of the land and building associated with and surrounding the company's corporate headquarters in Vancouver; and

-- The reduction in headcount of 115 employees with planned future reductions as assets are divested.

Special Committee Explores Sale of All Assets

As part of its ongoing business and portfolio review, the Board of Directors announced on Nov. 28, 2007, that it had formed a Special Committee for the purpose of exploring alternative ways to maximize shareholder value, including transactions involving the sale of all or part of the assets of the company.

The Board of Directors later said on Dec. 11, 2007, that it had hired Goldman, Sachs & Co. to assist with this evaluation. The Board of Directors, Special Committee and Goldman, Sachs & Co. have reviewed a variety of alternatives in pursuing these initiatives.

The company intends to retain adequate proceeds from these asset sales in order to repay the outstanding convertible debt in September 2008. In addition, the company will evaluate options for the optimal use of the balance of cash proceeds from the asset sales and will provide updates on these options at the appropriate time.

"Following a comprehensive review of available options, the QLT board has concluded that seeking offers for the sale of QLT USA as a whole or of its assets is a key initial step in executing our strategy," said Boyd Clarke, QLT's Chairman. "We look forward to working with our advisors and interested parties to maximize stockholder value," he added.

New Business Focus

QLT plans to focus its ongoing business primarily on its Visudyne(R) franchise and its clinical development programs related to its punctal plug delivery technology and its photodynamic therapy dermatology technology. The company expects to achieve these milestones in these three areas:

2) Drug in Punctal Plugs for Glaucoma: IND filing for the punctal plug with drug technology and initiation of a Phase I/II clinical trial in glaucoma patients in H1, with results on plug retention and drug elution expected by year end 2008.

3) Photodynamic therapy with Lemuteporfin (QLT00748): Human proof-of-concept studies for the treatment of moderate to severe acne expected to be completed in 2008.

The company expects to gain further insight into the strategic value of these assets as clinical milestones are met. The Board of Directors will continue to evaluate strategic options regarding these assets as they progress through their clinical development.

"I look forward to increasing our operational efficiency and driving our business forward with a clear focus on these three key programs," commented Bob Butchofsky, President and Chief Executive Officer. "We are focused on achieving these important clinical milestones and are excited about their potential to create significant shareholder value."

About QLT Inc.

QLT Inc. (NASDAQ SM: QLTI) (TSE: QLT) -- http://www.qltinc.com/-- is a global biopharmaceutical company that discovers, develops and commercializes innovative therapies. Its research and development efforts are focused on pharmaceutical products for ophthalmology and dermatology. In addition, it utilizes three unique technology platforms, photodynamic therapy, Atrigel(R) and punctal plugs with drugs, to create products such as Visudyne(R) and Eligard(R) and future product opportunities.

Atrigel is a registered trademark of QLT USA Inc. Visudyne is a registered trademark of Novartis AG. Eligard is a registered trademark of Sanofi-aventis.

QUEBECOR WORLD: Fails to Obtain $125 Mil. Financing by Jan. 15--------------------------------------------------------------Quebecor World Inc. disclosed that in connection with the waivers obtained from its banking syndicate and the sponsors of its securitization program on Dec. 31, 2007, it has not obtained by Jan. 15, 2008, $125 million of new financing, as had been required under the terms of the waivers.

The non-satisfaction of this condition of the Dec. 31, 2007 waiver does not automatically result in the termination of the banking syndicate's waiver or an acceleration of the maturity of indebtedness under the company's credit facilities or a cross-default under other financial instruments of Quebecor World.

Any such termination, acceleration or default would require formal notification from a majority of the banking syndicate to Quebecor World. The non-satisfaction of this condition of the Dec. 31, 2007, waivers also entitles the sponsors under the company's securitization program to terminate such program, but any such termination would not, if effected, result in cross-defaults under any financial instrument of the company.

The company had requested a one week waiver of this condition from its banking syndicate and securitization sponsors to facilitate the rescue financing initiative currently underway, but has declined to pay the significant waiver costs requested by its banking syndicate for this waiver, as the company believes it must preserve cash and this payment would not be in the best interests of all of the company's stakeholders.

The company renewed its request that the banking syndicate provide a suitable waiver and is awaiting the response.

In addition, Quebecor World dislosed that in light of the rescue initiative and its current circumstances, it will not make the $19.5 million payment of interest due Jan. 15, 2008, on its outstanding $400 million 9.75% Senior Notes due 2015. Under the terms of the indentures relating to the 9.75% Senior Notes due 2015, failure to pay interest does not result in an immediate default and the company has 30 days to cure the non-payment.

Quebecor World is working with Quebecor Inc. and Tricap Partners Ltd. on the rescue financing plan reported on Jan. 14, 2008, and believes that satisfaction of the conditions of such initiative would be in the best interests of the companyand all its stakeholders. There is no assurance all the consents and approvals to the completion of the rescue financing plan and recapitalization initiative will be received on a timely basis.

About Quebecor World Inc.

Headquartered in Montreal, Quebec, Quebecor World Inc. (TSX:IQW)(NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary.

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As reported in the Troubled Company Reporter on Nov. 29, 2007,Standard & Poor's Ratings Services lowered its preferred stockrating on Quebecor World Inc. two notches to 'C' from 'CCC-'. The company's other ratings, including the 'B-' long-term corporate credit rating, remain unchanged. All ratings are on CreditWatch with negative implications, where they were initially placed Aug. 9, 2007.

QUEBECOR WORLD: Moves Rescue Financing Term Compliance Deadline---------------------------------------------------------------Quebecor World Inc. has extended the deadline for the satisfaction of certain conditions precedent to the previously disclosed CDN$400 million rescue financing agreement with Quebecor Inc. and Tricap Partners Ltd. Quebecor Inc. and Tricap Partners Ltd. have indicated that they have made progress on the satisfaction of these conditions and have requested additional time to attempt to satisfy them. The deadline for these conditions has been moved from 9:00 p.m. on Jan. 16, 2008 to 9:00 a.m. on Jan. 20, 2008.

Quebecor World continues to work with Quebecor Inc. and Tricap Partners Ltd. on the rescue financing plan and believes that satisfaction of the conditions of such initiative would be in the best interests of the company and all its stakeholders.

There is no assurance all the consents and approvals to the completion of the rescue financing initiative will be received on a timely basis.

About Quebecor World Inc.

Headquartered in Montreal, Quebec, Quebecor World Inc. (TSX: IQW)(NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertisingactivities, well as print solutions to retailers, branded goodscompanies, catalogers and to publishers of magazines, books andother printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary.

QUEBECOR WORLD: Interest Nonpayment Spurs S&P to Give D Ratings---------------------------------------------------------------Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Montreal-based printing company Quebecor World Inc. to 'D' from 'CCC'. Standard & Poor's also lowered the rating on the company's $400 million 9.75% senior unsecured notes due 2015 to 'D' from 'CCC-'. In addition, S&P lowered the rating on the company's other senior unsecured notes to 'CC' from 'CCC-'. The preferred stock rating remains unchanged at 'D'. With these rating actions, S&P also removed the ratings from CreditWatch with negative implications, where they were placed Aug. 9, 2007.

"The downgrade follows Quebecor World's nonpayment of interest expense on its $400 million 9.75% senior unsecured notes, due Jan. 15, 2008," said Standard & Poor's credit analyst Lori Harris. "In the unlikely event that the company makes the payment within the 30-day cure period, we could raise the ratings," Ms. Harris added.

The interest payments on Quebecor World's remaining senior unsecured notes remain current, hence S&P hasn't lowered the ratings on these issues to 'D'. However, S&P will lower the ratings on these issues should the senior unsecured notes go into default.

Quebecor World is in default on its $750 million revolving credit facility because the company was unable to raise the required $125 million by Jan. 15, 2008, which was a condition to the covenant waiver on Dec. 31, 2007. Although Quebecor World had requested an extension from the bank group regarding the requirement for $125 million in new funds, it did not receive it. The nonsatisfaction of this condition does not automatically result in the termination of the bank group's waiver, an acceleration of the maturity of indebtedness under the credit facilities, or a cross-default under Quebecor World's other debt obligations. Any such action would require formal notification from a majority of the bank group to Quebecor World.

RADNOR HOLDING: Wants Plan Solicitation Period Extended to Apr. 21------------------------------------------------------------------Radnor Holdings Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to extend, until April 21, 2008, the exclusive period wherein they can solicit acceptances of their plan of reorganization, the Associated Press reports.

The Debtors told the Court that they deserve the extension since they already succeeded in solving major disputes in their case, such as their fee dispute with the Official Committee of Unsecured Creditors, the AP says. The resolution of that dispute led to the filing of their Chapter 11 plan last April 2007.

The Debtors further said that they need more time to modify the plan with their new owners, and that ending the plan-solicitation period might invite more costly and time-consuming litigation, the AP cites the Debtors in their court filings.

About Radnor Holdings

Based in Radnor, Pennsylvania, Radnor Holdings Corporation --http://www.radnorholdings.com/-- manufactured and distributed a broad line of disposable food service products inthe United States, and specialty chemicals worldwide.

RALI SERIES 2007: Moody's Downgrades Ratings on 17 Tranches -----------------------------------------------------------Moody's Investors Service downgraded the ratings of 17 tranches and has placed under review for possible downgrade the ratings of 12 tranches from 5 deals issued by RALI in 2007. The collateral backing these classes consists of primarily first lien, fixed and adjustable-rate, Alt-A mortgage loans.

The ratings were downgraded and placed under review for downgrade based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its re-rating Moody's has also applied its published methodology updates to the non delinquent portion of the transactions.

The company announced that it had agreed to acquire Consolidated Theaters for $210 million in cash. Consolidated is a theater exhibitor with 28 theaters and 400 screens in Georgia, Maryland, North Carolina, South Carolina, Tennessee and Virginia. The deal is expected to close in the first half of 2008. Following the receipt of proceeds from the IPO of National Cinemedia in 2007 and prior to the announcement, the company had significant cash balances that Fitch had anticipated would be used for acquisitions or other corporate uses and not to repay debt. Regardless of how the transaction is ultimately financed, Fitch believes the company has meaningful flexibility at its current rating to make this acquisition.

The ratings continue to reflect the company's size and position as a leading theater exhibitor, solid geographic diversity, sound operating performance, and relatively stable free cash flow generation. These strengths are balanced by the intermediate term risks associated with collapsing film distribution windows, increased competition from at-home entertainment media, heavy reliance upon a limited number of film distribution companies, limited control over revenue trends, high operating leverage which could make theater operators free cash flow-negative in a downturn, and a history of aggressive dividend payouts.

RGC's liquidity was strong with cash of $382.7 million and$99.2 million available under the company's $100 million revolver as of Sept. 27, 2007. The company's maturity schedule is manageable with less than $35 million due in each of 2008, 2009 and 2010, excluding $123.7 million of convertible notes which are due May 15, 2008 and convertible at holder's option. The company's liquidity is further supported by the working capital dynamics of the theater exhibition business. At LTM Sept. 30, 2007, unadjusted leverage was 3.6 times, while adjusted leverage was 5.2x.

In initially establishing the long-term ratings, Fitch heavily weighed the prospective challenges facing RGC and its industry peers. We anticipated that movie exhibitors would continue to consolidate and pursue moderate shareholder friendly activity. The acquisition of consolidated, announced, is consistent with Fitch's expectations. Going forward, the company continues to have flexibility to make acquisitions, invest in the business organically, and prudently return capital to shareholders.

In terms of the Writers Guild of America strike, Fitch does not believe the movie exhibitors such as Regal, AMC Entertainment ('B'; Stable Outlook) and Cinemark will be impacted by this strike over the near-term as they can rely on the lag time between pre-production and final film release giving them a slate of film product over the next nine to 12-month period. Obviously, a more protracted strike could have a negative impact on these entities as they are solely dependent on the studios product while maintaining a very high fixed cost base and, generally speaking, weaker capital structures than companies in other media and entertainment sub-sectors.

The company posted a net loss of $26,022,912 on net sales of $8,570,540 for the year ended Sept. 30, 2007, compared with a net loss of $23,797,745 on net sales of $1,070,141 in the prior year.

The company incurred cash flows from operating activities of $11,397,627 for the year ended Sept. 30, 2006. As of Sept. 30, 2007, the company's working capital was $2,596,985. It also had a net tangible stockholders' equity of $1,625,527 and an accumulated deficit of $132,749,287.

At Sept. 30, 2007, the company's balance sheet showed $15,284,348 in total assets, $8,672,593 in total liabilities and $1,625,527 in stockholders' equity.

Headquartered in Sandy, Utah, RemoteMDx Inc. (OTC BB: RMDX.OB) --http://www.remotemdx.com/-- markets, monitors and sells the TrackerPAL device. The TrackerPAL is used to monitor convicted offenders that are on either probation or parole, in the criminal justice system. The TrackerPAL device utilizes GPS and cellular technologies in conjunction with a monitoring center that is staffed 365 days a year.

RENAISSANCE HOME: Public Auction of Securities Set for Feb. 15--------------------------------------------------------------AG Delta Holdings LLC and its designee will conduct a public auction on Feb. 15, 2008, at 11:00 a.m. E.S.T. of:

RESIDENTIAL ACCREDIT: Moody's Downgrades Ratings on 25 Tranches---------------------------------------------------------------Moody's Investors Service downgraded the ratings of twenty five tranches and has placed under review for possible downgrade the ratings of one tranche from ten transactions issued by Residential Accredit Loans, Inc. in 2007. The collateral backing these classes primarily consists of first lien, adjustable-rate negatively amortizing Alt-A mortgage loans.

The ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its analysis Moody's has also applied its published methodology updates to the non-delinquent portion of the transactions.

The affirmations, affecting approximately $8.8 billion of outstanding certificates, reflect a stable relationship between credit enhancement and future loss expectations. The downgrades, affecting approximately $644.7 million in outstanding certificates, and classes placed on Rating Watch Negative, affecting approximately $84.9 million of outstanding certificates, reflect deterioration in the relationship between CE and loss expectation.

The collateral of the above transactions primarily consists of 30- and 15-year fixed-rate mortgage loans extended to Alt-A borrowers and are secured by first liens, primarily on one- to four-family residential properties. As of the December 2007 distribution date, the above transactions are seasoned from 7 (2007-QS7) to 33 (2005-QS3) months. The pool factors range from 60% (2005-QS3) to 95% (2007-QS5). GMAC-RFC (rated 'RMS2+' by Fitch) is the master servicer for all the above transactions.

RESIDENTIAL ASSET: S&P Downgrades Ratings on Three Classes----------------------------------------------------------Standard & Poor's Ratings Services lowered its ratings on three classes from Residential Asset Securities Corp.'s series 2003-KS6. Concurrently, S&P lowered its rating on class B2 from RASC Series 2005-KS4 Trust to 'CCC' from 'B'. Furthermore, S&P affirmed its ratings on the remaining classes from these two transactions.

The downgrades of the three classes from series 2003-KS6 reflect deterioration in overcollateralization (O/C) due to excessive realized losses. As of the Dec. 25, 2007, distribution date, the failure of excess interest to cover monthly losses had reduced O/C to $1.384 million, 59% below its target. During the past six remittance periods, losses have exceeded excess interest by an average of $230,561. Losses from delinquencies are projected to further reduce credit support. Total delinquencies for this transaction were 48.83% of the current pool balance, while severe delinquencies (90-plus days, foreclosures, and REOs) were 32.07%. Cumulative realized losses were 1.55% of the original pool balance.

The downgrade of class B2 from series 2005-KS4 reflects a steady increase in the amount of loans in the severe delinquency pipeline in combination with a deterioration of credit support due to excessive realized losses. As of the Dec. 25, 2007, distribution date, the failure of excess interest to cover monthly losses had reduced O/C to $2.300 million, 30% below its target. During the past six remittance periods, losses have exceeded excess interest by an average of $120,577. Based on the delinquency pipeline, losses are projected to further reduce credit enhancement levels. Total delinquencies for this transaction were 29.52% of the current pool balance, while severe delinquencies were 18.07%. Cumulative realized losses were 1.82% of the original pool balance.

The affirmations reflect current and projected credit support percentages that are sufficient to maintain the current ratings. As of the December 2007 remittance report, credit support for these transactions was, on average, 35.80% of the current pool balances. In comparison, current creditenhancement was, on average, 2.44x of the original levels. As of December 2007, total delinquencies for these transactions were 48.83% (series 2003-KS6) and 29.52% (series 2005-KS4) of the current pool balances, with severe delinquencies representing 32.07% (series 2003-KS6) and 18.07% (series 2005-KS4) of the current pool balances. Cumulative realized losses were 1.55% (series 2003-KS6) and 1.82% (series 2005-KS4) of the original pool balances.

A combination of subordination, excess interest, and O/C provides credit enhancement for these transactions. The collateral supporting these series consists of subprime pools of fixed- and adjustable-rate mortgage loans secured by first liens on one- to four-family residential properties.

RISKMETRICS GROUP: Planned IPO Cues Moody's Rating Review---------------------------------------------------------Moody's Investors Service placed the B1 corporate family rating of RiskMetrics Group Holdings LLC under review for possible upgrade in connection with an anticipated initial public offering of the common stock of its parent holding company, RiskMetrics Group, Inc. Based on an assumed public offering price of $18 per share, the net proceeds from the offering to the company would be approximately $164.4 million before any over-allotment option. Moody's anticipates that RiskMetrics will use the majority of the net proceeds from the offering to prepay the $125 million second lien term loan of RiskMetrics Holdings, with the balance available for general corporate purposes.

Moody's review will focus on the amount of debt repaid with IPO proceeds and the expected financial policies of the issuer post-IPO. If the IPO is completed and the second lien term loan is repaid, then the Corporate Family Rating could be upgraded by one notch.

The first lien credit facility is currently rated Ba3 or one notch higher than the B1 Corporate Family Rating. If the company completes the IPO and repays all the second lien debt, then the debt capitalization post-IPO will consist entirely of first lien bank debt. Consequently, post-IPO the ratings on the first lien bank facility will likely match the CFR rating.

Moody's placed these ratings of RiskMetrics Holdings under review for possible upgrade:

-- Corporate family rating at B1

Moody's affirmed these ratings:

-- Probability-of-default rating at B1

-- $25 million first lien revolver due 2013, Ba3 (LGD 3, 34%)

-- $300 million first lien term due 2014, Ba3 (LGD 3, 34%)

-- $125 million second lien term loan due 2014, B3 (LGD 5, 87%)-ratings expected to be withdrawn upon completion of IPO and refinancing.

Based in New York, RiskMetrics Holdings is a leading provider of risk management and corporate governance products and services to participants in the global financial markets.

ROUNDY'S SUPERMARKETS: S&P Revises Outlook from Negative to Stable------------------------------------------------------------------Standard & Poor's Ratings Services revised the outlook on Roundy's Supermarkets Inc. to stable from negative and affirmed the 'B+' corporate credit rating. This action reflects the company's credit metrics, which have improved to levels adequate for the current rating, and adequate liquidity. At the same time, S&P affirmed all other ratings on the Milwaukee, Wisconsin-based company.

"The stable outlook reflects credit metrics that are consistent for current ratings," said Standard & Poor's credit analyst Stella Kapur. S&P could lower the rating if the company engages in an LBO-financed sale. "We could also downgrade Roundy's if profitability levels decline due to increased competition in its core markets," she added, "or if the company engages in additional debt-financed dividend activity, resulting in weaker credit metrics."

As of the Dec. 18, 2007 distribution date, the transaction's aggregate certificate balance has decreased by approximately 23.8% to $595.4 million from $781.5 million at securitization. The Certificates are collateralized by 153 mortgage loans ranging in size from less than 1.0% to 4.6% of the pool, with the top 10 loans representing 24.6% of the pool. Forty six loans, representing 35.7% of the pool, have defeased and have been replaced with U.S. Government securities. There have been aggregate realized losses of approximately $15.2 million. Nine loans, representing 7.6% of the pool, are currently in special servicing. The largest specially serviced loan is Diamond Point Plaza ($14.4 million - 2.4%), which is discussed below. Moody's has estimated aggregate losses of approximately $17.2 million for all of the specially serviced loans. Thirty two loans, representing 16.9% of the pool, are on the master servicer's watchlist.

Moody's was provided with year-end 2006 operating results for 92.0% of the performing loans. Moody's loan to value ratio is 91.1% compared to 92.6% at Moody's last full review in October 2006 and compared to 84.2% at securitization. Moody's is upgrading Classes C, D, E and F due to increased credit support, defeasance and stable overall pool performance. Moody's is downgrading Classes J and K due to realized and expected losses from the specially serviced loans.

The top four non-defeased loans represent 12.7% of the pool. The largest loan is the 1615 Poydras Street Loan ($27.3 million - 4.6%), which is secured by a 502,000 square foot office building located in the Warehouse District of New Orleans, Louisiana. Damage from Hurricane Katrina has been repaired and the property is fully operational. The largest tenant is FM Services Company, which occupies 58.0% of the premises under a lease that expires in April 2011. As of June 2007 the property was 87.8% leased compared to 89.0% at last review and 94.0% at securitization. Moody's LTV is 88.4%, compared to 91.2% at last review and compared to 81.2% at securitization.

The second largest loan is the Western Plaza II Loan ($17.7 million -- 3.0%), which is secured by the borrower's interest in a 343,000 square foot (collateral is 45,880 square feet and seven ground lease Pads) strip shopping center located in Mayaguez, Puerto Rico. The center is anchored by Sam's Club, Caribbean Cinemas and Pep Boys. The center is also shadow anchored by a Super Kmart. As of April 2007 the property was 100.0% leased compared to 98.6% at last review and compared to 100.0% at securitization. Moody's LTV is 80.2%, the same as at last review and compared to 86.4% at securitization.

The third largest loan is the Red Lion Shopping Center Loan ($15.9 million - 2.7%), which is secured by a 225,000 retail center located 10 miles northeast of downtown Philadelphia, Pennsylvania. The property is anchored by Best Buy, Staples and Pep Boys. As of October 2007, the property was 82.8% leased compared to 67.0% at last review and 92.0% at securitization. The loan is on the master servicer's watchlist due to a decline in occupancy and a low debt service coverage ratio. Moody's LTV is 87.9% compared to in excess of 100.0% at last review and compared to 75.3% at securitization.

The fourth largest loan is the Diamond Point Plaza Loan ($14.4 million - 2.4%), which is secured by a 251,000 retail center located in suburban Baltimore, Maryland. The loan was transferred to special servicing in June 2002 and became REO in February 2006. The loan was transferred due to the unexpected vacancy of Sam's Club (subsidiary of Wal-Mart Stores, Inc.; Moody's senior unsecured rating Aa2 - stable outlook), which went dark in 2002 although it continues to pay rent (56.0% GLA; lease expiration January 2009). Ames, formerly the second largest tenant, also vacated its space prior to its lease expiration. The property is currently 59.9% leased but only 4.3% occupied. The Trust was awarded a $22.8 million judgment against the borrower and its affiliates in December 2005 and successfully won the appeal in September 2006, defeating the debtors' attempts to have the judgment overturned. Moody's anticipates a significant loss upon the resolution of this loan, although the loss could be partially or substantially mitigated if the special servicer is successful in its efforts to collect on the judgment.

SCAN INTERNATIONAL: Can Hire ARG LLC as Liquidation Consultants---------------------------------------------------------------S.C.A.N. International Inc. obtained authority from the U.S. Bankruptcy Court for the District of Maryland to employ American Recovery Group LLC, as its liquidation consultants.

American Recovery is expected to:

a) provide the Debtor with supervision and consulting services including providing the Debtor with supervisory and financial personnel with respect to the liquidation;

b) assist the Debtor in developing and implementing a marketing and advertising strategy and program, including signage and mailings;

c) provide the Debtor with accounting services and sales reporting as needed;

d) assist the Debtor in developing markdown and sale strategies;

e) assist the Debtor in obtaining merchandise in a like kind and quality to the Debtor's existing inventory, including goods on consignment from third parties, to augment the Debtor's inventory and the liquidation sale to maximize the recovery for unsecured creditors in these proceedings; and

f) provide such other services as may be set forth in the agreement or which the parties may determine are necessary and desirable.

Documents submitted to the Court did not disclose the consulting firm's fees. The firm has not received any retainer as advance payment of certain of its services.

Byron Clark, a principal at American Recovery, assures the Court that the firm does not represent or hold interest that is adverse to the Debtor's estates.

SCAN INTERNATIONAL: Panel Can Hire Tydings & Rosenberg as Counsel-----------------------------------------------------------------The Official Committee of Unsecured Creditors in S.C.A.N. International Inc.'s Chapter 11 case obtained permission from the U.S. Bankruptcy Court for the District of Maryland to employ Tydings & Rosenberg LLP, as its counsel.

Tydings & Rosenberg is expected to:

a) advise the Committee with respect to its rights, duties, and powers;

b) assist and advise the Committee's investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtor and other relevant matters;

c) draft pleadings and applications;

d) analyze any Chapter 11 plan filed in the case and participating in the formulation of a plan;

e) represent the Committee in hearings and proceedings;

f) represent the Committee in collateral litigation before this Court and other Courts; and

g) perform such other legal services as may be required or in the best interests of the Committee in accordance with the powers and duties of the Committee.

Documents submitted to the Court did not disclose the firm's billing rates.

Alan M. Grochal, Esq., a partner at Tydings & Rosenberg, assured the Court that the firm does not hold or represent any interest adverse to the Debtor's estate.

Based in Columbia, Maryland, S.C.A.N. International Inc. aka S.C.A.N. Contemporary Furniture -- http://www.scanfurniture.com/- - sells furniture. It filed for Chapter 11 protection onDec. 26, 2007 (Bankr. D. M.D. Case No. 07-23153). Stephen F. Fruin, Esq., at Whiteford, Taylor & Preston LLP, represents the Debtor in its restructuring efforts. An Official Committee of Unsecured Creditors has been appointed in the Debtor's case. When the Debtor filed for protection from its creditors, it listed estimated assets and debts between $1 million and $100 million.

SCAN INTERNATIONAL: Taps Keen Consultant as Real Estate Advisor---------------------------------------------------------------S.C.A.N. International, Inc. asks the U.S. Bankruptcy Court for the District of Maryland to employ Keen Consultants, the real estate division of KPMG Corporate Finance LLC, along with its wholly owned subsidiary KPMG CF Realty LLC, as its special real estate advisors.

Keen Consultants will:

a) on request, review pertinent documents and consult with Debtor's counsel, as appropriate;

b) coordinate with the Debtor the development of due diligence materials, the cost of which shall be Debtor's sole responsibility;

c) develop, subject to Debtor's review and approval, a marketing plan and implement each facet of the marketing plan;

d) communicate regularly with all prospects and maintain records of all communications;

e) meet periodically with the Debtor and its professional advisors in connection with the status of its efforts;

f) work with the attorneys responsible for the implementation of the proposed transactions, reviewing documents, negotiating and assisting in resolving any problems which may arise; and

g) if required, appear in Court during the term of this retention, to testify or to consult with the Debtor in connection with the scope of KPMG's engagement.

The Debtor says that given the transactional nature of the firm's engagement, the firm will not be billing the Debtor by the hour and will not be keeping records of time spent for professional services rendered in this case. The firm will be keeping reasonably detailed descriptions of the services that were rendered pursuant to its engagement agreement with the Debtor.

Lorie Beers, a managing director at KMPG Corporate Finance, assures the Court that the firm is disinterested as that term is defined in Section 101(14) of the U.S. Bankruptcy Code.

Based in Columbia, Maryland, S.C.A.N. International Inc. aka S.C.A.N. Contemporary Furniture -- http://www.scanfurniture.com/- - sells furniture. It filed for Chapter 11 protection onDec. 26, 2007 (Bankr. D. M.D. Case No. 07-23153). Stephen F. Fruin, Esq., at Whiteford, Taylor & Preston LLP, represents the Debtor in its restructuring efforts. An Official Committee of Unsecured Creditors has been appointed in the Debtor's case. When the Debtor filed for protection from its creditors, it listed estimated assets and debts between $1 million and $100 million.

The CreditWatch negative placement is due to interest shortfalls to the class. As of the Jan. 15, 2008, remittance report, the total accumulated shortfall was $52,626.

According to the remittance report, the shortfall is due to recurring special servicing fees arising from the transfer of a loan to the special servicer, LNR Partners Inc., in October 2007. It is Standard & Poor's understanding that the transfer relates to a lawsuit filed by the borrower against the tenant occupying a property in Miami, Florida, as described below, for breach of lease obligations. The CreditWatch placement will remain in effect while Standard & Poor's learns more about the lawsuit and its impact on the transaction, including whether the fees referenced above will be recovered. If it appears likely that the fees cannot be recovered, S&P will lower the rating to 'D'.

The transaction is collateralized by two credit-tenant-lease loans secured by properties in Brea, California, and Miami. The Brea property is a 576,234-sq.-ft. campus-style office/research-and-development complex consisting of five buildings built in 1979 and 1984. The Miami property is a 568,032-sq.-ft. campus-style office/research-and-development complex consisting of five buildings built in 1986 and 1992. The properties are leased under triple-net bondable lease obligations guaranteed by Beckman Coulter Inc. (BBB/Negative/NR).

SPATIALIGHT INC: Files Voluntary Chapter 7 Petition---------------------------------------------------The Board of Directors of SpatiaLight Inc. resolved on Jan. 3, 2008, that it was in the best interests of the company to file a voluntary petition in the United States Bankruptcy Court pursuant to Chapter 7 of Title 11 of the United States Code.

The bankruptcy filing decision was made after review of:

-- the company's financial situation and prospects;

-- the company's inability to restructure the outstanding debts;

-- the company's inability to obtain necessary operational funding; and

-- the decision of the Securities and Exchange Commission to file a lawsuit against the company, which lawsuit contains claims which the company believes to be without merit.

On Jan. 3, 2008, David F. Hakala, as the company's representative, working with the company's bankruptcy counsel was authorized and directed to execute and deliver all documents and take all necessary actions to perfect the filing of a voluntary Chapter 7 bankruptcy case on behalf of SpatiaLight.

As reported in the Troubled Company Reporter on Nov. 15, 2007, SpatiaLight Inc.'s consolidated balance sheet at Sept. 30, 2007,showed $5.5 million in total assets and $19.0 million in totalliabilities, resulting in a $13.5 million total shareholders'deficit.

The company's consolidated balance sheet at Sept. 30, 2007, alsoshowed strained liquidity with $695,152 in total current assetsavailable to pay $17.8 million in total current liabilities.

Going Concern Doubt

As reported in the Troubled Company Reporter on March 23, 2007,Odenberg, Ulakko, Muranishi & Co. LLP, in San Francisco, expressedsubstantial doubt about SpatiaLight Inc.'s ability to continue asa going concern after auditing the company's financial statementsfor the years ended Dec. 31, 2006, and 2005. The auditing firmpointed to the company's recurring operating losses, negative cashflows from operations, negative working capital position, andstockholders' deficit.

SPONGETECH DELIVERY: Earns $8,668 in Second Quarter Ended Nov. 30-----------------------------------------------------------------Spongetech Delivery Systems Inc. reported net income of $8,668 on sales of $278,976 for the second quarter ended Nov. 30, 2007, versus a net loss of $87,064 on $0 of sales in the corresponding period ended Nov. 30, 2006.

For the three months period ended Nov. 30, 2007, operating expenses were $235,198, compared to operating expenses of $87,074 in the corresponding period of 2006. The increase of $148,124 is the result of an increase in selling, general and administrative expenses.

At Nov. 30, 2007, the company's balance sheet showed $1,094,702 in total assets, $273,280 in total liabilities, and $821,422 in total shareholders' equity.

Full-text copies of the company's financial statements for the quarter ended Nov. 30, 2007, are available for free at:

Drakeford & Drakeford LLC, in New York, expressed substantial doubt about Spongetech Delivery Systems Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended May 31, 2007. The auditing firm reported that the company has incurred operating losses since the date of organization and requires additional capital to continue operations.

As of Nov. 30, 2007, the company had an accumulated deficit of $3,654,311.

About Spongetech Delivery

Based in New York, Spongetech Delivery Systems Inc. (OTC BB: SPNG) -- http://www.spongetech.com/-- engages in the design, production, marketing, and distribution of hydrophilic polyurethane sponge cleaning and waxing products primarily for vehicular use in the United States.

Fitch believes that the amount of credit enhancement will be sufficient to cover credit losses, including limited bankruptcy, fraud and special hazard losses. In addition, the ratings reflect the quality of the mortgage collateral, the strength of the legal and financial structures, and the master servicing capabilities of Wells Fargo Bank, N.A., which is rated 'RMS1' by Fitch.

The aggregate trust consists of 3,811 fixed- and adjustable-rate, conventional, first and second lien residential mortgage loans, 96.21% of which have original terms to maturity of not more than 30 years and 3.79% of which have original terms to maturity of 40 years. As of the cut-off date (Nov. 1, 2006), the mortgages have an aggregate principal balance of approximately $798,487,780. Approximately 32.48% of the mortgage pool is fixed rate and 67.52% is adjustable. The mortgage pool has a weighted average original loan-to-value ratio of 81.57%, a weighted average coupon of 8.110%, and a weighted average remaining term of 356 months.

None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws.

The mortgage loans were originated by various originators or acquired by various originators or their correspondents in accordance with such originator's respective underwriting standards and guidelines. The largest percentages of originations were those made by BNC Mortgage, Inc. (47.27% of the mortgage pool), Countrywide Home Loans, Inc. (21.60% of the mortgage pool), People's Choice Home Loans, Inc. (18.95% of the mortgage pool), and Argent Mortgage Company, LLC (9.91% of the mortgage pool).

SASCO, a special purpose corporation, deposited the loans in the trust, which issued the certificates. For federal income tax purposes, an election will be made to treat the trust fund as multiple real estate mortgage investment conduits.

Sun expects to report revenues for the second quarter of fiscal 2008 of approximately $3.60 billion, an increase of approximately 1.0% as compared with $3.57 billion for the second quarter of fiscal 2007. Net bookings for the second quarter of fiscal 2008 were approximately $3.85 Billion, an increase of approximately 7.0% year over year.

Total gross margin as a percent of revenues for the second quarter of fiscal 2008 is expected to be approximately 48%, an increase of approximately 3.0 percentage points as compared with the second quarter of fiscal 2007.

Net income for the second quarter of fiscal 2008 on a GAAP basis is expected to be in the range of $230 million to $265 million, or $0.28 to $0.32 per share on a diluted basis, as compared with net income of $133 million, or $0.15 per share, for the second quarter of fiscal 2007.

"Our preliminary results for the second quarter reflect solid execution and continued operational progress," said Jonathan Schwartz, chief executive officer of Sun Microsystems. "The future is even brighter today, as evidenced by our agreement to acquire MySQL, one of the fastest growing players in the $15 billion database market and a key component of many of the Web's premier properties such as Facebook, Wikipedia, China Mobile and Baidu. As the market for open source databases continues its spectacular growth, we look forward to this acquisition directly contributing to Sun's growth as the platform of choice for the Web economy."

SUN MICROSYSTEMS: Signs $1 Billion Pact to Acquire MySQL --------------------------------------------------------Sun Microsystems Inc. has entered into a definitive agreement to acquire MySQL AB, an open source database developer, for approximately $1 billion in total consideration.

According to the company, the acquisition accelerates its position in enterprise IT to now include the $15 billion database market.

Following completion of the proposed transaction, MySQL will be integrated into Sun's Software, Sales and Service organizations and the company's CEO, Marten Mickos, will be joining Sun's senior executive leadership team.

In the interim, a joint team with representatives from both companies will develop integration plans that build upon the technical, product and cultural synergies and the best business and product development practices of both companies.

As part of the transaction, Sun will pay approximately $800 million in cash in exchange for all MySQL stock and assume approximately $200 million in options.

The transaction is expected to close in late Q3 or early Q4 of Sun's fiscal 2008. Completion of the transaction is subject to regulatory approval and other customary closing conditions. The deal is expected to be accretive to FY10 operating income on a GAAP basis.

Commenting on the deal, Jonathan Schwartz, CEO and president of Sun Microsystems, said "[the] acquisition reaffirms Sun's position at the center of the global Web economy. Supporting our overall growth plan, acquiring MySQL amplifies our investments in the technologies demanded by those driving extreme growth and efficiency, from Internet media titans to the world's largest traditional enterprises. MySQL's employees and culture, along with its near ubiquity across the Web, make it an ideal fit with Sun's open approach to network innovation. And most importantly, [the] announcement boosts our investments into the communities at the heart of innovation on the Internet and of enterprises that rely on technology as a competitive weapon."

MySQL's open source database is widely deployed across all major operating systems, hardware vendors, geographies, industries and application types. The complementary product line-ups will extend MySQL's database reach and are expected to bring new markets for Sun's systems, virtualization, middleware and storage platforms.

"The combination of MySQL and Sun represents an enormous opportunity for users and organizations of all sizes seeking innovation, growth and choice," said Marten Mickos, CEO, MySQL. "Sun's culture and business model complements MySQL's own by sharing the same ideals that we have had since our foundation -- software freedom, online innovation and community and partner participation. We are tremendously excited to work with Sun and the millions of members of the MySQL open source ecosystem to continue to deliver the best database for powering the modern Web economy."

About MySQL

Headquartered in Cupertino, Calif. and Uppsala, Sweden, MySQL AB -- http://www.mysql.com/-- develops and supports a family of high-performance, affordable database products. The company's flagship offering is 'MySQL Enterprise', a comprehensive set of production-tested software, proactive monitoring tools, and premium support services. MySQL has 400 employees in 25 countries.

SUN MICROSYSTEMS: S&P Ratings Unaffected by $1 Bil. MySQL Deal--------------------------------------------------------------Standard & Poor's Ratings Services's ratings and outlook on Sun Microsystems Inc. (BB+/Stable/--) are not affected by the company's recent announcement that it has agreed to acquire MySQL AB for a total consideration of about $1 billion (consisting of $800 million in cash and $200 million in options).

The acquisition supports Sun's strategic intent to expand its position in the open-source software market; MySQL is an open-source developer of database software.

S&P expects Sun to maintain a moderately leveraged financial profile and strong liquidity. As of Sept. 30, 2007, leverage was less than 2x and cash and investments totaled $5.2 billion.

TCO FUNDING: Moody's Holds B2 Rating with Stable Outlook--------------------------------------------------------Moody's affirmed the B2 corporate family rating for TCO Funding Corp. and the Ba3 ratings on its revolving credit facility due 2010 and first lien term loan due 2012. The ratings outlook was changed to stable from positive, as Moody's understands that the company's IPO will not occur before the end of the second quarter of 2008, postponing the prospects of material debt reduction that had supported the positive outlook. Additionally, the rating agency noted the company's short-term need to loosen one of its financial covenants under its first lien credit facilities.

The stable outlook is supported by these:

(1) While the Sept. 30, 2007 adjusted debt to EBITDA leverage, well in excess of 6x, was high for a B2 rating, Moody's expects the leverage ratio to decline by the end of 2008 even if the IPO does not materialize. This assumes that Tensar's operating performance will slightly improve in 2008, driven by the roll-out of new products, continuous momentum in international sales and manufacturing efficiencies. However, a key risk to this scenario in Moody's view is the possible deterioration of the US non- residential construction market, which could weigh on Tensar's performance.

(2) Moody's anticipates the company to receive an amendment to loosen its financial coverage covenant for 2008, therefore securing adequate liquidity.

Negative pressures could be exerted on the ratings or outlook if:

(1) Tensar is not able to reduce its leverage ratio to a level close to 6 times by the end of 2008; and

(2) the company's liquidity deteriorates following a financial covenant breach.

Headquartered in Atlanta, Georgia, Tensar Corporation offers an integrated suite of products and services that provide soil stabilization, earth retention, foundation support, high performance roadways, and erosion and sediment control. The company's products and services are utilized by the infrastructure end markets, including in transportation, commercial, and industrial construction. Revenues for the trailing twelve month period ended Sept. 30, 2007 were approximately $220 million.

TELEPACIFIC HOLDINGS: S&P Revises Outlook to Negative-----------------------------------------------------Standard & Poor's Rating Services revised its outlook on Los Angeles, California-based U.S. TelePacific Holdings Corp. to negative from positive due to concerns about weaker operating trends and the company's ability to meet near-term covenant compliance given the step-downs incorporated in the credit agreement over the next few quarters. At the same time, Standard & Poor's affirmed the 'B-' corporate credit rating and all other ratings. TelePacific is a competitive local exchange carrier.

"The outlook revision reflects our expectations for weaker earnings growth in 2008 because of higher churn, given the company's exposure to the mortgage and real estate sector in California and Nevada, and limited headroom under its covenants, which step down materially over the next year," said Standard & Poor's credit analyst Allyn Arden.

While TelePacific's churn was around 1.2% over the last few years, Standard & Poor's expect this figure to be between 1.5% and 2% in 2008. The mortgage and real estate segment represents about 10% of total revenues. TelePacific's lack of market diversity further exacerbates its exposure to these areas. Additionally, TelePacific will have difficulty meeting tightening financial covenants over the next few quarters given current operating conditions.

The ratings continue to reflect a vulnerable business risk profile stemming from significant competition from larger, better-capitalized incumbent telecom operators, the lack of any sustainable competitive advantages, low barriers to entry, market concentration, and a highly leveraged financial profile.

TEXHOMA ENERGY: GLO CPA's Raises Going Concern Doubt----------------------------------------------------Houston-based GLO CPA's, LLP, expressed substantial doubt about the ability of Texhoma Energy Inc., to continue as a going concern after it audited the company's financial statements for the year ended Sept. 30, 2007. The auditor reported that the company has recurring operating losses, negative working capital and is dependent on financing to continue operations.

The company posted a net loss of $2,187,921 on total revenues of $1,847,647 for the year ended Sept. 30, 2007, compared with a net loss of $5,442,536 on total revenues of $2,258,425 in the prior year.

As of Sept. 30, 2007, the company has total current assets of $698,105 to pay its total current liabilities of $2,158,745.

At Sept. 30, 2007, the company's balance sheet showed $5,870,138 in total assets and $10,314,025 in total liabilities, and a stockholders' deficit of $4,443,887.

Headquartered in Dallas, Texhoma Energy Inc. (Other OTC: TXHE.PK) engages in the exploration and production of crude oil and natural gas. It has a 6% participation agreement for the exploration and development of an area in Louisiana.

TEXAS WESLEYAN: Moody's Keeps Ba2 Rating on Series 1997A Bonds--------------------------------------------------------------Moody's Investors Service affirmed the Ba2 rating on Texas Wesleyan University's Series 1997A bonds issued through the Forth Worth Higher Education Finance Corporation. At this time, Moody's is revising its rating outlook to positive from stable based on continued improvements in enrollment and a strengthened balance sheet.

Legal security: Payments are a general unsecured obligation of the University.

Interest Rate Derivatives: None

Strengths

* Growing enrollment in both undergraduate and graduate programs (2,833 full-time equivalent students in fall 2007, of which 51.5% are undergraduates compared to 64.7% in 2000). Transfer students comprise nearly 60% of the University's entering undergraduate enrollment driven by strategic relationships with nearby community colleges, including a dual enrollment program with Hill College.

* Operating performance continues to be positive (4.9% three- year average operating margin and 12.4% operating cash flow margin in FY 2007), stemming from healthy enrollment trends and improved management oversight of budget. Total Net Tuition Revenue has grown, on average, by 8.5% over the past three years. Management expects positive performance to continue in FY 2008 with revenue ahead of projections.

* Liquidity, while still weak (expendable financial resources of $8.3 million in FY 2007), has improved due to management's focus on generating positive operating results and on rebuilding liquidity. The University plans to retain all unrestricted gifts (typically $600,000-800,000 annually) instead of using them for operations and has limited endowment spending to a fixed rate of $2.5 million annually. In addition, improved investment returns have contributed to resource growth, with a 16.6% annual return in FY 2007.

Challenges

* Limited liquidity, excluding plant equity, with unrestricted resources of -$1.3 million in FY 2007. The University's lack of liquid financial resources and reliance on a line of credit for seasonal cash flow leaves it vulnerable to unexpected shifts in demand or financial performance.

* Thin financial resource coverage of debt, with expendable financial resources covering direct debt by 0.4 times. Management reports that the Board has authorized $3 million in debt or internal funds to finance the purchase of annuities for the University's underfunded and inactive defined benefit pension plan.

* Highly competitive market, with the University competing with public universities and regional private higher education institutions, reflected in the relatively low net tuition per student of $12,683 when compared to peer institutions, especially those with significant graduate enrollment. The competitive environment can potentially limit growth in net tuition revenues and generation of operating cash flow to fund strategic program investments, as well as financial resource growth. However, the University expects that its net tuition per student will show an increase for FY 2008.

* Highly reliant on student charges, with tuition and auxiliary revenues comprising 83.3% of operating revenue in FY 2007, making the University vulnerable to student market challenges.

Recent Developments

In December 2007, Texas Wesleyan University purchased $10 million of annuities with equities liquidated from the assets of the University's inactive defined benefit pension plan. The annuities purchased in December cover approximately 50% of plan participants. Management reports plans to purchase an additional $8 million of annuities in the spring of 2008 to cover the remainder of plan participants. The additional annuities will be purchased with $5 million from the remaining assets of the pension plan and $3 million or either debt or funds of the University. The plan, which has been closed to new participants since 1996, was underfunded by $1.4 million at the end of FY 2007. Moody's includes the difference between the plan assets and projected benefit obligation as indirect debt of the University.

THOMPSON CREEK: Moody's Maintains Corporate Family Rating at B3---------------------------------------------------------------Moody's Investors Service affirmed Thompson Creek's B3 corporate family rating and lowered its first-lien senior secured rating to B3 (LGD4, 53%) from B2. The one notch downgrade reflects a higher expected loss driven by the reduction in the amount of junior debt in Thompson Creek's capital structure. The full repayment of the $62 million second-lien debt ahead of the first-lien lenders removed a significant amount of loss absorption cushion and results in an increase in the loss given default point estimate to 53% from 40%. The corporate family rating is being re-assigned to the parent, Thompson Creek Metals Company, Inc. from Thompson Creek Metals Company USA.

Thompson Creek's B3 corporate family rating reflects its singular concentration in molybdenum, small size, concentration in two mines, contingency payments of up to $125 million at molybdenum prices higher than $15/lb., and reliance on fairly significant volume increases to meet its earnings and cash flow targets. The B3 rating also considers favorable fundamentals of the molybdenum market, the long history of mining at Thompson Creek's two operations, significant debt reduction in 2007, and the absence of unfunded pension, OPEB and similar liabilities.

Rating Lowered:

-- Senior secured rating to B3 (LGD4, 53%) from B2

Rating Affirmed:

-- Corporate family rating, B3

Moody's last rating action on Thompson Creek was to assign a B3 corporate family rating and rate its 1st and 2nd lien debt B2 and Caa2, respectively, in September 2006.

Thompson Creek Metals Company Inc., is engaged in the mining and processing of molybdenum and had revenues of $716 million in the nine month ended Sept. 30, 2007.

The affirmations, affecting approximately $1.3 billion of the outstanding certificates, reflect a stable relationship between credit enhancement and expected loss.

The collateral of the above transaction consists of 30-year adjustable rate mortgage loans extended to prime borrowers and secured by first-liens on one- to four- family residential properties. The transaction is master serviced by Wells Fargo Bank, N.A. (rated 'RMS1' by Fitch).

As of the Dec. 2007 remittance date, the pool factor is 82% and the transaction is seasoned 18 months.

The affirmations are due to the stable Fitch calculated value since issuance. The transaction is a single borrower, interest-only loan with an Expected Repayment Date of Oct. 15, 2016. As of the December 2007 distribution date the transaction balance is $800 million, unchanged since issuance.

Collateral for the loan is a first-priority mortgage lien on timberlands located in Texas (43% of the total acreage), Louisiana (31%), and Arkansas (26%).

At issuance total acreage was 989,622 of which 99,993 is nonmortgage acres considered higher and better use land that is expected to be sold. Timber growing on the HBU land is pledged as security for the trust; however, any proceeds from the sale of the land will not be pledged to the trust. As of November 2007, HBU has been reduced by 680 acres to 99,313 acres, resulting in total acreage of 897,942.

The servicer reported November 2007 trailing twelve months debt service ratio is 1.59 times compared to issuance of 1.41x. The total harvest volume for this same period was 3.7 million tons compared to issuance projections of 3.4 million tons.

While the actual 2007 net cash flow is higher than expectations, Fitch's collateral value is based on a 30-year period. As a result, Fitch's loan-to-value improved slightly to 72.6% from 76.1% at issuance.

The failure to pay interest on such Notes within 30 days of the due date could result in the indebtedness represented by the Notes becoming immediately due and payable and as a result cause other indebtedness of the company to be accelerated and become immediately due and payable.

As reported in the Troubled Company Reporter on Jan. 8, 2008,TOUSA failed to make its semi-annual interest payments due Jan. 1, 2008, under $300 million in aggregate principal amount of its 9% Senior Notes due 2010 and $185 million in aggregate principal amount of its 10-3/8% Senior Subordinated Notes due 2012.

As previously disclosed, the company is considering restructuring alternatives.

Headquartered in Hollywood. Florida, TOUSA Inc. (NYSE: TOA) --http://www.tousa.com/-- is a homebuilder in the United States, operating in various metropolitan markets in 10 states located infour major geographic regions: Florida, the Mid-Atlantic, Texas,and the West. TOUSA designs, builds, and markets detached single-family residences, town homes, and condominiums to a diverse groupof homebuyers, such as "first-time" homebuyers, "move-up"homebuyers, homebuyers who are relocating to a new city or state,buyers of second or vacation homes, active-adult homebuyers, andhomebuyers with grown children who want a smaller home. It alsoprovides financial services to its homebuyers and to othersthrough its subsidiaries, Preferred Home Mortgage Company andUniversal Land Title Inc.

* * *

As reported in the Troubled Company Reporter on Jan. 8, 2008,Standard & Poor's Ratings Services lowered its corporate creditrating on TOUSA Inc. to 'D' from 'CC' and downgraded TOUSA's$300 million 9.0% senior notes due 2010 and its $185 million10.375% senior subordinated notes due 2012 to 'D' from 'C' afterthe company announced that it had failed to make scheduledinterest payments on these obligations.

Additionally, S&P lowered its rating on TOUSA's senior securedfirst-lien term loan to 'CC' from 'CCC-', and S&P affirmed its 'C'ratings on $575 million of additional unsecured debt and TOUSA's$300 million senior secured second-lien term loan.

UNICO INC: Nov. 30 Balance Sheet Upside-Down by $6.9 Million------------------------------------------------------------Unico Inc.'s consolidated balance sheet at Nov. 30, 2007, showed$6.5 million in total assets and $13.4 million in total liabilities, resulting in a $6.9 million total stockholders' deficit.

At Nov. 30, 2007, the company's consolidated balance sheet also showed strained liquidity with $67,552 in total current assets available to pay $13.4 million in total current liabilities.

The company reported a net loss of $3.0 million for the third quarter ended Nov. 30, 2007, compared with a net loss of $4.8 million in the corresponding period ended Nov. 30, 2006.

During the three months ended November 30, 2007 the company incurred total operating expenses of $399,763, an increase of $26,430 from the $373,333 of total operating expenses incurred in the three months ended Nov. 30, 2006.

During the three months ended Nov. 30, 2007, interest expense was $1.7 million, compared to $905,621 of interest expense incurred in the three months ended Nov. 30, 2006. Loss on settlement of debt was $-0- in the three months ended Nov. 30, 2007, compared to $2.7 million loss on settlement of debt incurred during the three months ended Nov. 30, 2006. During the three months ended Nov. 30, 2007, derivative loss on debentures was $844,553 a decrease of $47,350 from the $891,903 loss on derivative loss on debentures incurred during the three months ended Nov. 30, 2006.

The company attributes the increase in interest expense primarily to increases in the amount of convertible debentures issued by the company. The company attributes the decreases in derivative loss on debentures to the fact that no debentures were converted to common stock in the three months ended Nov. 30, 2007, primarily because the company does not have sufficient authorized, but unissued shares to permit the conversion of many of the convertible debentures outstanding.

As reported in the Troubled Company Reporter on June 15, 2007, HJAssociates & Consultants LLP, in Salt Lake City, expressedsubstantial doubt about Unico Inc.'s ability to continueas a going concern after auditing the company's financialstatements for the years ended Feb. 28, 2007, and 2006. Theauditing firm pointed to the company's recurring losses fromoperations and stockholders' deficit.

About Unico Inc.

Based in San Diego, Calif., Unico Inc. (OTC BB: UCOI.OB) --http://www.unicomining.com/-- is a publicly traded natural resource company in the precious metals mining sector that is focused on the exploration, development and production of gold,silver, lead, zinc, and copper concentrates at its three mine properties: the Deer Trail Mine, the Bromide Basin Mine and the Silver Bell Mine.

WR GRACE: Court Commences Asbestos Estimation Trial---------------------------------------------------Estimation trial on W.R. Grace & Co.'s asbestos-related personal injury claims started on Jan. 14, 2008. The trial aims to establish the amount of Grace's current and future PI asbestos liabilities to allow the company to proceed with the confirmation of its Plan of Reorganization.

The Jan. 14 Estimation Date was scheduled by Judge Judith Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware in late July 2007. Judge Fitzgerald oversees Grace's bankruptcy case.

All of Grace's personal injury issues are handled by Judge Ronald Buckwalter of the U.S. District Court for the Eastern District of Pennsylvania. Grace's PI issues were formerly handled by District Judge Wolin.

Grace, a specialty chemicals and materials company, and 61 of its affiliates sought protection under Chapter 11 of the Bankruptcy Code in early April 2001 to resolve increasing asbestos-related liabilities. At the Petition Date, Grace reported total assets of $2,323,500,000, and debts of $2,397,800,000. In comparison, as of November 30, 2007, the Grace Debtors reported combined assets of $3,335,000,000, and combined debts of $3,712,000,000, resulting in equity of ($376,300,000).

GRACE'S PLAN

Grace filed its Plan of Reorganization on November 13, 2004, and amended it on January 13, 2005. Grace's current draft is labeled a Proposed First Amended Plan of Reorganization.

Grace and its debtor-affiliates will be substantively consolidated for limited purposes including claims allowance and treatment and distribution under the Plan. The deemed substantive consolidation will not affect (i) the Debtors' legal and organizational structure, (ii) the encumbrances that are required to be maintained under the Grace Plan, and (iii) the settlement agreements the Debtors entered separately with Sealed Air Corporation and Fresenius Medical Care Holdings, Inc.

(2) Creation of Asbestos Trust and its Funding

A Section 524(g) trust will be created for which all asbestos-related claims will be channeled and resolved. The Grace Asbestos Trust will be funded by payments from Sealed Air pursuant to the settlement agreement, which payments will consist of:

* $512,500,000 in cash, plus interest accrued from December 21, 2005, until the Plan's effective date, at a rate of 5.5% per annum compounded annually; and

* 18,000,000 shares of Sealed Air common stock, as adjusted to account for a two-for-one stock split implemented by Sealed Air in March 2007.

As of January 14 (Eastern Time), Sealed Air stocks are priced at $20.77 per share, placing a value of about 373,860,000 on the settlement pact.

The PI-AO Claims would be funded with warrants exercisable for that number of shares of Grace common stock, which, when added to the shares issued directly to the Asbestos Trust on the effective date of the Plan, would represent 50.1% of Grace's voting securities. If the common stock issuable on exercise of the warrants is insufficient to pay all PI-AO Claims, then Grace would pay any additional liabilities in cash.

PI Claimants would have the option to litigate their claims against the trust or, if they meet specified eligibility criteria, accept a settlement amount based on the severity of their disease. PD Claimants, on the other hand, would be required to litigate their claims against the trust.

On confirmation of Grace's Plan, all asbestos-related claims against Grace's Canadian operating subsidiary, Grace Canada, Inc., will be transferred to the Asbestos Trust along with all Asbestos Claims.

As of January 9, 2008, the Court has approved settlement agreements between Grace and two law firms representing PD Claimants. PD Claimants represented by the law firm Dies & Hile, LLP, received a $60,000,000 settlement amount, while Claimants represented by the law firm Motley Rice, LLC, received a $17,900,000 settlement amount. Grace is currently litigating the remaining PD Claims.

(3) $1,613,000,000 Maximum Value of Asbestos-Related Claims

As a condition to the effectiveness of the Grace Plan, the Debtors want the Court to establish that their aggregate Asbestos PI-SE Claims, Asbestos PD Claims, and Asbestos Trust Expenses is not greater than $1,483,000,000, and their Asbestos PI-AO Claims not greater than $130,000,000.

(4) Treatment of Non-Asbestos Claims

All allowed administrative or priority claims would be paid 100% in cash and all general unsecured claims, other than those covered by the asbestos trust, would be paid 85% in cash and 15% in Grace common stock. Grace estimates that claims with a recorded value of $1,241,000,000, including interest accrued through December 31, 2006, would be satisfied in the manner pursuant to Grace's Plan at the effective date of that Plan.

Grace would finance these payments with $150,000,000 of cash on hand, $115,000,000 from the settlement agreement with Fresenius Medical Care Holdings, Inc., $800,000,000 in new debt, and $143,000,000 in value of Grace common stock.

Grace would satisfy other non-asbestos related liabilities, estimated to be $508,000,000, primarily environmental, tax, pension and retirement medical obligations, as they become due and payable over time. Proceeds from available product liability insurance would supplement operating cash flow to service new debt and liabilities not paid on the effective date of the Plan.

(5) Treatment of Equity Interests

Grace common stock will remain outstanding at the effective date of the company-proposed Plan, but interests of existing shareholders would be subject to dilution by additional shares of common stock issued under the Plan.

(6) Estimated Value of Reorganized Debtors

In their Joint Plan, the Debtors estimate that their reorganized value ranges from $2,200,000,000 to $2,600,000,000.

On November 5, 2007, the Official Committee of Asbestos Personal Injury Claimants and David T. Austern, the Court-appointed future claims representative, filed a competing joint plan of reorganization.

Judge Fitzgerald terminated Grace's exclusivity periods in July 2007 noting that despite the company's more than six years under bankruptcy protection, it still has not negotiated a consensual resolution of its asbestos liabilities with interested parties.

The Competing Plan conditions its effectivity on the Bankruptcy Court finding that Grace's pending and future asbestos liabilities is not less than $4,000,000,000.

Asbestos PI Claims, under the Competing Plan, will be resolved in accordance with an Asbestos Trust Agreement and Trust Distribution Procedures. The Asbestos Trust will be funded by:

* the Sealed Air Payment -- $512,500,000 cash, plus interest, and 9,000,000 shares of Sealed Air common stock;

Grace will ask the Court to find that the value of its pending and future PI liabilities ranges from $385,000,000 to $1,314,000,000. Grace has maintained throughout its bankruptcy case that many PI Claimants have not submitted evidence showing they have handled any of the company's asbestos-containing products or evidence showing a link between asbestos and any medical problems.

Grace's expert, Dr. B. Thomas Florence, who has 30 years of experience in management consulting and research, estimates that, as of April 2001, the net present value of the company's pending and future asbestos PI claims is within a range of $385,000,000 to $1,314,000,000, through 2049, with a median of $712,000,000.

Dr. Florence also used a set of assumptions based on the premise that only claimants whose claims meet certain criteria would be able to sustain their burden of proof that their claims against the Debtors are valid, and therefore should be valued as part of the estimation process. The evidentiary criteria used are:

1. a proof of claim;

2. minimum exposure criteria: nature of exposure to Grace asbestos containing products must be either because claimant is a worker who personally mixed Grace asbestos- containing products or because claimant is a worker who personally installed Grace asbestos-containing product;

3. minimum causation criteria for Lung Cancer claims of (i) diagnosis of asbestosis based on the B-Reader report of a reliable B-Reader, and (ii) reproducible ILO score of 1/0 or greater;

4. minimum medical criteria for Other Cancer claims of diagnosis of laryngeal cancer;

5. minimum medical criteria for all Non-malignant claims of (i) diagnosis of asbestosis or diffuse pleural thickening based on the B-Reader report of a reliable B-reader, and (ii) ILO score of 1/0 or greater for asbestosis;

6. minimum impairment criteria for Severe Asbestosis claims of (i) diagnosis of asbestosis based on the B-Reader report of a reliable B-Reader, (ii) ILO score of 2/1 or greater, (iii) Pulmonary Function Test results of TLC <65% or complying with American Thoraic Society standards; and

7. minimum impairment criteria for Asbestosis claims of (i) diagnosis of asbestosis or diffuse pleural thickening based on the B-Reader report of a reliable B-Reader, (ii) ILO score of 1/0 or greater, and (iii) PFT results of TLC <80% or complying with ATS standards.

Throughout Grace's bankruptcy case, the Official Committee of Unsecured Creditors has been supportive of the Debtors' case management proposal saying that it is a reasonable means to determine the "true scope of Grace's liability to asbestos claimants and then provide for the payment of valid claims on a basis that preserves Grace's still strong core business operations."

The Official Committee of Equity Security Holders, who represents holders of more than 70,000,000 shares of Grace's common stock, has maintained that Grace is solvent. The Equity Committee believes that the estimation trial will demonstrate that, as a matter of logic and epidemiological science, the number of individuals who could realistically have developed true asbestos-related disease from Grace products is diminishingly small.

PI Committee -- $4,700,000,000 to $6,200,000,000

The PI Committee's expert, Dr. Mark Peterson, a trial lawyer and social psychologist, estimates that Grace's pending and future PI liabilities range from $4,700,000,000 to $6,200,000,000.

According to Dr. Peterson, he used standard forecasting methods regularly accepted by courts, asbestos trusts and businesses for establishing asbestos liabilities. Grace's asbestos liability is estimated as the product of (i) the number of claims, (ii) the fraction of claims that get paid, and (iii) the paid values of those claims.

The FCR's expert, Jennifer L. Biggs, an actuarian, estimates that Grace's liabilities is $7,900,000,000, on an undiscounted basis. She estimates that, when reduced to present value as of the Petition Date using a 5.2% interest rate, Grace's PI liabilities is $3,700,000,000.

Ms. Biggs based her estimate by projecting the quantity and typeof future PI Claims against Grace for up to 54 years afterthe Petition Date. The estimate also includes a provision forthe known pending PI Claims filed against the Debtors on or before the Petition Date. Ms. Biggs calculated the total liability by multiplying the known pending and projected futureclaims filings by the expected average payment amounts that theDebtors would pay to claimants in each of the years in projection.

As of the Dec. 17, 2007 distribution date, the transaction's aggregate principal balance has decreased by approximately 4.0% to $2.75 billion from $2.86 billion at securitization. The Certificates are collateralized by 148 loans, ranging in size from less than 1.0% to 11.5% of the pool, with the top ten loans representing 42.8% of the pool. The pool includes three shadow rated loans, representing 5.7% of the pool. No loans have defeased. The pool has not realized any losses since securitization and currently there are no loans in special servicing. Seventeen loans, representing 8.7% of the pool, are on the master servicer's watchlist.

Moody's was provided with year-end 2006 and partial year 2007 operating results for 94.6% and 53.7%, of the pool respectively. Moody's weighted average loan to value ratio for the conduit component is 101.9%, compared to 102.0% at securitization.

The largest shadow rated loan is the Westfield Gateway Loan ($83.0 million; 3.0%), which is secured by the borrower's interest in a 924,000 square foot (519,000 square feet is collateral) regional mall located in Lincoln, Nebraska. The loan is interest only for the entire term. Moody's current shadow rating is Baa3, the same as at securitization.

The second largest shadow rated loan is the Paramount Building Loan ($39.5 million; 1.4%), which is secured by a 639,000 square foot office building located in New York City. The loan is interest only for the entire term. Moody's current shadow rating is Aaa, the same as at securitization.

The third largest shadow rated loan is the Wyndham Hotel Greenspoint Loan ($34.0 million; 1.2%), which is secured by a 472 room hotel located in Houston, Texas. Moody's current shadow rating is Baa1, the same as at securitization.

The top three conduit loans represent 21.0% of the pool. The largest conduit loan is the Prime Outlets Pool Loan ($315.3 million - 7.5%), which is a 50.0% participation interest in a $630.6 million loan secured by 10 retail centers located in eight states, including Texas, Pennsylvania, Florida, and Ohio. The total gross leaseable area is 3.5 million square feet. The loan is interest only for the first 24 months of the term, amortizing on a 360-month schedule thereafter. Moody's LTV is 109.7%, the same as at securitization.

The second largest conduit loan is the Marriot-Chicago Loan ($195.0 million -- 7.1%), which is secured by a 1,192 room full service hotel located in Chicago, Illinois. RevPAR for 2006 was $140.25 compared to $135.98 at securitization. The loan has a non-pooled junior component of $25 million. The loan is interest only for the first 48 months and then amortizes on a 360 month schedule. Moody's LTV is 88.7%, compared to 96.3% at securitization.

The third largest conduit loan is the 530 Fifth Avenue Loan ($175.0 million -- 6.4%), which is secured by a 500,000 square foot office property located in New York City. As of October 2007, the property was 100.0% leased, the same as at securitization. The property is also encumbered by a $25 million non-trust junior component and $25 million of mezzanine financing. The loan is interest only for the first 48 months and then amortizes on a 360 month schedule. Moody's LTV is 90.3%, the same as at securitization.

WASHIGNTON MUTUAL: Discloses $1.87BB Loss After $1.6BB Writedown----------------------------------------------------------------Washington Mutual Inc. disclosed a fourth quarter 2007 net loss of $1.87 billion, or $2.19 per diluted share. The company attributed the loss to the $1.6 billion after-tax charge to writedown Home Loans goodwill and the higher level of provisioning stemming from the housing market weakness. Due to fourth quarter results, the company recorded a net loss of $67 million, or $0.12 per diluted share, for all of 2007.

"We announced in December a series of proactive steps being taken to manage through the unprecedented market conditions that this company and others in the financial services industry face," WaMu Chairman and Chief Executive Officer Kerry Killinger, said."

These actions included:

-- The raising of $2.9 billion in net proceeds through the issuance of convertible preferred stock that increased the year-end tangible capital to tangible asset ratio to 6.67%, $3.7 billion above the company's targeted ratio of 5.50%.

-- A reduction in the quarterly cash dividend rate on the company's common stock to 15 cents per share.

-- A major expense reduction initiative projected to reduce 2008 noninterest expense by $500 million to $8.0 billion or less.

-- A significant acceleration in the strategic focus of our Home Loans business that emphasizes mortgage lending through its retail banking stores and other retail distribution channels.

"The substantial infusion of new capital, dividend reduction, significant expense reductions, and the major change in our home loans business all combine to further fortify WaMu's strong capital and liquidity position," Mr. Killinger added.

Mr. Killinger added that the Retail Banking, Card Services and Commercial businesses delivered steady performance in 2007. In particular, the Retail Bank, which is the cornerstone of the franchise, continued its strong growth opening more than 1.1 million net new checking accounts for the year. The company plans to continue to leverage the Retail Bank's distribution network by opening additional stores and adding more than 1 million net new checking accounts in 2008.

Solid revenues and continued focus on expense control. Totalrevenue (net interest income plus noninterest income) of $3.41 billion in the fourth quarter was solid, reflecting the strength of the franchise as evidenced by the company's strong net interest income and growth in fee income. Total revenue for the quarter was negatively impacted by continued illiquidity in the capital markets, resulting in reductions to noninterest income from net market valuation losses of $528 million on the company's trading and available-for-sale securities portfolios. Fourth quarter noninterest expense, excluding the $1.78 billion pretax charge to writedown Home Loans goodwill, was $2.39 billion, up $200 million from the prior quarter due primarily to $143 million associated with the expense reduction steps announced in December. The company is projecting a $500 million reduction in 2008 noninterest expense to $8.0 billion or less.

Increase in loan loss provision reflects further weakening in housing market. The company's provision of $1.53 billion was within the most recently communicated guidance range of $1.5 to $1.6 billion. This higher level of provisioning reflects the nationwide housing market weakness that has increased delinquencies and the level of charge-offs. During the quarter, net charge-offs of $747 million were also in line with guidance. The quarter's provision was approximately double the level of net charge-offs, bringing the allowance for loan losses to $2.57 billion at year end.

Home loan volume reflects distressed housing market. Fourth quarter loan volume of $19.09 billion was down 28% from the third quarter. During the fourth quarter, the company discontinued all remaining lending through its subprime mortgage channel.

About Washington Mutual

Headquartered in Seattle, Washington Mutual Inc. (NYSE:WM) --http://newsroom.wamu.com/-- is a group of consumer and small business banks. At June 30, 2007, WaMu and its subsidiariesreported total assets of $312.22 billion. The company'ssubsidiary banks currently operate approximately 2,700 consumerand small business banking stores throughout the United States.

As reported in the Troubled Company Reporter on Dec. 12, 2007,Moody's Investors Service downgraded by two notches the long-termratings of Washington Mutual, Inc. (senior to Baa2 from A3) andits subsidiaries including the lead thrift Washington Mutual Bank(financial strength rating to C- from C+ and long-term deposits toBaa1 from A2). Moody's placed a stable rating outlook on all Washington Mutual entities.

WCI COMMUNITIES: Amends Credit Deals to Waive Loan Covenants------------------------------------------------------------WCI Communities Inc. has amended its senior secured revolving credit agreement and term loan agreement. These amendments, which extend through June 30, 2009, modify, suspend or waive certain covenants and provide the company with greater operating and financial flexibility to allow the company to manage its business during this industry downturn.

The company also reduced the total commitment available under the revolver and the outstanding amount of the term loan, converted a portion of the revolver to non-revolving status, and agreed to increase the pricing on the loans.

"We appreciate the continued support of our senior lenders and believe that these amendments enhance WCI's financial flexibility to help navigate through this difficult market," Jerry Starkey, president and chief executive officer of the company, said.

"The company remains focused on generating cash flow to reduce debt and strengthen its balance sheet," Mr. Starkey added. "We continue to aggressively reduce overhead and search for avenues to lower our cost of doing business without sacrificing the high quality of our products and services which WCI's customers demand and expect."

About WCI Communities

Headquartered in Florida, WCI Communities Inc. (NYSE: WCI) --http://www.wcicommunities.com/-- is a home builder catering to primary, retirement, and second-home buyers in Florida, New York, New Jersey, Connecticut, Maryland and Virginia. The company offers both traditional and tower home choices and features a wide array of recreational amenities in its communities. In addition to homebuilding, WCI generates revenues from its Prudential Florida WCI Realty Division and its recreational amenities, well as through land sales and joint ventures. The company owns and controls developable land on which the companyplans to build about 20,000 traditional and tower homes.

* * *

As reported on the Troubled Company Reporter on Jan. 11, 2008,Standard & Poor's Ratings Services said that its ratings andoutlook on WCI Communities Inc. (WCI; CCC/Negative/--) continue to acknowledge this Florida-based luxury homebuilder's acuteliquidity challenges.

As reported in the Troubled Company Reporter on Nov. 12, 2007,Moody's lowered the ratings of WCI Communities Inc., including its corporate family rating to Caa2 from B3 and the ratings on its senior subordinated notes to Caa3 from Caa2. The ratings outlook is negative.

XIOM CORP: Michael Studer Expresses Going Concern Doubt-------------------------------------------------------Michael T. Studer, CPA P.C. in Freeport, New York, expressed substantial doubt about the ability of XIOM Corp. to continue as a going concern after it audited the company's financial statements for the year ended Sept. 30, 2007.

The auditor stated that XIOM has incurred losses for the years ended Sept. 30, 2007 and 2006 and has a stockholders' deficit at Sept. 30, 2007.

The company posted a net loss of $2,723,709 on net sales of $933,194 for the year ended Sept. 30, 2007, compared with a net loss of $805,821 on net sales of $629,336 for the year ended Sept. 30, 2006.

At Sept. 30, 2007, the company's balance sheet showed $1,307,051 in total assets, $1,508,506 in total liabilities and common stock, subject To rescission rights of $670,399, and a stockholders' deficit of $871,854.

* Arizona Bankruptcy Filing Rose 60% in 2007--------------------------------------------The United States Bankruptcy Court of Arizona reports a 60% increase in its bankruptcy filings compared to a year earlier, Edward Gately of East Valley Tribune.com reports.

The Court's record shows that filers were mostly consumers in Phoenix and are for Chapter 7 liquidation, according to Tribune.com.

Tribune.com notes that there were at least 7,204 filings in the valley compared in 2006, while 10,570 filings for the State in 2007. The State averaged between 30,000 and 35,000 filing, Tribune.com adds.

* U.S. Economy Experiences Modest Growth in 2007, Fed Reserve Says------------------------------------------------------------------The Federal Reserve said Wednesday that the economy of the United States expanded "modestly" in several regions during middle of November until December 2007, Rex Nutting writes for the MarketWatch.

The Federal Reserve's Beige Book states that labor markets in several areas are still "tight" amid the Department of Labor's December 2007 report of a 5% unemployment rate increase, MarketWatch relates.

Transactions of five out of twelve federal banking districts were reportedly slow, another five were moderate, and the remaining two mixed, MarketWatch reports, citing the Federal Reserve.

This book American Commercial Banking: A History is written by Benjamin J. Klebaner.

This informative and fascinating book traces the history of commercial banking from its inception to 1988.

The authoritative historical perspective provides a greater understanding of more recent times and of the many policy issues that have arisen through the years.

In addition to being a remarkable piece of scholarship, it is a very readable book. It should be on the "must read" list of all students of finance and history, as well as others who are curious as to the role banks have played in our society.

*********

Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities.Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/

On Thursdays, the TCR delivers a list of recently filed chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format.

Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday edition of the TCR.

For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852.

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